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Morgan Stanley Direct Lending FundMSDL -0.13%38 5-Year Yield-on-Cost % is 12.41 as of Aug. 21, 2026, which is 20% above its 10-year median of 10.36. GuruFocus rates MSDL with a GF Score™ of 38/100 and a GF Value™ of $7.67 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,110 Asset Management companies, Morgan Stanley Direct Lending Fund ranks better than 82.61% on this metric.
Morgan Stanley Direct Lending Fund (NYSE:MSDL) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Morgan Stanley Direct Lending Fund 5-Year Yield-on-Cost % Related Terms
MSDL vs JFR, HQH, HYT: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Morgan Stanley Direct Lending Fund 5-Year Yield-on-Cost % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost % falls into.
Morgan Stanley Direct Lending Fund 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Morgan Stanley Direct Lending Fund (MSDL) has a 5-Year Yield-on-Cost % of 12.41 as of Aug. 21, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Morgan Stanley Direct Lending Fund and its competitors. This is 20% above median its historical median of 10.36. Over the past decade, Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost % has ranged from 2.07 to 14.28. According to the industry distribution chart, Morgan Stanley Direct Lending Fund ranks #193 out of 1110 companies in the Asset Management industry, placing it in the top 17.4%.
Is Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost % too high?
Morgan Stanley Direct Lending Fund's current 5-Year Yield-on-Cost % of 12.41 is 20% above median its 10-year median of 10.36. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 14.28. The Asset Management industry median 5-Year Yield-on-Cost % is 6.36. Morgan Stanley Direct Lending Fund's value of 12.41 is 95.1% above this industry median. Based on the distribution chart, Morgan Stanley Direct Lending Fund ranks #193 out of 1110 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Morgan Stanley Direct Lending Fund has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Stanley Direct Lending Fund's 5-Year Yield-on-Cost % compare to JFR and HQH?
According to the Asset Management industry distribution chart, Morgan Stanley Direct Lending Fund ranks #193 out of 1110 companies for 5-Year Yield-on-Cost %. This places Morgan Stanley Direct Lending Fund in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.36. Morgan Stanley Direct Lending Fund's value of 12.41 is 95.1% above this benchmark. Historically, Morgan Stanley Direct Lending Fund's own 5-Year Yield-on-Cost % has ranged from 2.07 to 14.28 over the past decade. While the company's 10-year median is 10.36 vs. the industry median of 6.36, Morgan Stanley Direct Lending Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.36, based on 1,110 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Stanley Direct Lending Fund's current 5-Year Yield-on-Cost % of 12.41 is 95.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Morgan Stanley Direct Lending Fund and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Stanley Direct Lending Fund's current 5-Year Yield-on-Cost % is 12.41, which is 20% above median its own 10-year median of 10.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Stanley Direct Lending Fund stock overvalued right now?
Based on GuruFocus' analysis, Morgan Stanley Direct Lending Fund (MSDL) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.67, compared to a current price of $15.36 — trading 100.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 12.41, which is 20% above median its 10-year median of 10.36 and 95.1% above the Asset Management industry median of 6.36. Morgan Stanley Direct Lending Fund's overall GF Score™ is 38/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Morgan Stanley Direct Lending Fund (MSDL), the current 5-Year Yield-on-Cost % is 12.41 as of Aug. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Morgan Stanley Direct Lending Fund (MSDL) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Stanley Direct Lending Fund stock appears to be overvalued.
The current stock price of $15.36 is trading 100.3% above its estimated GF Value™ of $7.67.
GuruFocus considers Morgan Stanley Direct Lending Fund to be Significantly Overvalued.
Key valuation signals for MSDL:
5-Year Yield-on-Cost %: 12.41 (20% above median its 10-year median of 10.36)
GF Value™: $7.67 vs. price of $15.36 (100.3% above fair value)
Industry Position: 95.1% above the Asset Management median (#193 of 1110)
No single metric tells the full story. See the MSDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Stanley Direct Lending Fund is a fund whose investment objective is to achieve attractive risk-adjusted returns via current income and to a lesser extent, capital appreciation by investing predominantly in directly originated senior secured term loans issued by U.S. middle-market companies backed by private equity sponsors. It invests predominantly in directly originated senior secured term loans including first lien senior secured term loans including unitranche loans and second lien senior secured term loans, with the balance of the investments expected to be in higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases.
38GF Score
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