OCSL · Intrinsic value
Is Oaktree Specialty Lending Corporation (OCSL) overvalued or undervalued?
Oaktree Specialty Lending Corporation (OCSL) trades at the delayed market price of $11.34 a share. That price already implies revenue growth of −4.8% a year for 5 years. TickerWorth's fair value is $20.12 a share (44% below fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is OCSL undervalued?
- Fair value
- $20.12
- Market price
- $11.34
- Upside to fair value
- +77.4%
- Verdict
- 44% below fair value
Reverse DCF: Today's price implies revenue growth of −4.8% a year for 5 years; our model assumes −2.0% a year on average over the same horizon.
What is OCSL's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Financial Services companies in US
Its strongest point: trades below our estimate of what it's worth. Its weakest: recent price trend has been weak.
- Value · 58 of 100
Cheaper than 58% of Financial Services companies in US
- Price vs worth · 88 of 100
- Quality · 60 of 100
More profitable than 60% of Financial Services companies in US
- Financial health · 38 of 100
Financially stronger than 38% of Financial Services companies in US
- Growth · 37 of 100
Growing faster than 37% of Financial Services companies in US
- Momentum · 30 of 100
Outperformed 30% of Financial Services companies in US over the past year
Confidence: High confidence · Scored
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OCSL DCF valuation: where the gap comes from
At a recent price of $11.34, Oaktree Specialty Lending Corporation (OCSL) trades 44% below TickerWorth's blended fair value of $20.12 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices OCSL undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +77.4% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values OCSL at about $15.21 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Oaktree Specialty Lending Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 6.7%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -4.8% annual revenue growth for OCSL. Our base case instead compounds to about -2.0% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, OCSL's modeled DCF value ranges from about $4.24 to $59.04 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Oaktree Specialty Lending Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of OCSL's intrinsic value. Figures update as new filings and prices come in.
Every input behind OCSL's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | $292,230,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 60.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | -8% → -5% → -2% → 1% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.58 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 88M |
| Market priceLast known price · as of 2026-10-19 20:13 UTC | $11.34 |
Change OCSL's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Oaktree Specialty Lending Corporation do?
What does it do?
Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It operates in the Asset Management industry (Financial Services sector), headquartered in United States.
How does it make money?
The business turns $292M in annual revenue into profit. Out of every $100 of sales, about $82 is left as operating profit (operating margin of 81.6%), after a 100% gross margin on the products/services it sells. After all costs, taxes and interest, 14.5% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries moderate debt (1.0× equity), comfortably covers its short-term bills (3.0× current ratio), and is currently profitable.
Who at OCSL filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Panossian Armen | See Remarks | Open-market buy | $21,580.65 | Form 4 for Panossian Armen (opens sec.gov in a new tab) | |
| CALDWELL PHYLLIS R | Director | Open-market buy | $26,925.00 | Form 4 for CALDWELL PHYLLIS R (opens sec.gov in a new tab) | |
| Gero Deborah Ann | Director | Open-market buy | $21,557.80 | Form 4 for Gero Deborah Ann (opens sec.gov in a new tab) | |
| CALDWELL PHYLLIS R | Director | Open-market buy | $26,376.80 | Form 4 for CALDWELL PHYLLIS R (opens sec.gov in a new tab) | |
| CALDWELL PHYLLIS R | Director | Open-market buy | $329.75 | Form 4 for CALDWELL PHYLLIS R (opens sec.gov in a new tab) | |
| CALDWELL PHYLLIS R | Director | Open-market buy | $12,869.90 | Form 4 for CALDWELL PHYLLIS R (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is OCSL's intrinsic value?
TickerWorth's blended fair value for Oaktree Specialty Lending Corporation (OCSL) is $20.12 per share, versus a market price of $11.34 (44% below fair value).
Is OCSL overvalued or undervalued?
On our blended fair value OCSL looks undervalued vs fair value at $11.34. This is an educational estimate, not advice.
What discount rate is used for OCSL?
A WACC of 6.7% and a terminal growth rate of 2.5%.
Is Oaktree Specialty Lending stock undervalued?
TickerWorth's fair value for Oaktree Specialty Lending Corporation (OCSL) is $20.12 against a market price of $11.34. Our read: 44% below fair value. This is a model estimate, not investment advice.
Oaktree Specialty Lending (OCSL) DCF valuation and fair value
Our fair value for Oaktree Specialty Lending Corporation (OCSL) is $20.12, built on a 6.7% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Oaktree Specialty Lending stock?
Today's price implies revenue growth of −4.8% a year for 5 years; our model assumes −2.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $11.34. A model estimate, not investment advice.
Oaktree Specialty Lending (OCSL) insider trading
The most recent insider filing (SEC Form 4) for Oaktree Specialty Lending Corporation (OCSL): Panossian Armen, See Remarks, open-market buy on 2026-08-12. The latest filings are listed on this page. A disclosure, not a signal to trade.
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.