Bain Capital Specialty Finance, Inc. (BCSF): Price and Financial Metrics

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BCSF Price/Volume Stats

Bain Capital Specialty Finance, Inc. (BCSF) Company Bio

Bain Capital Specialty Finance, Inc. operates as a business development company (BDC) specializing in direct loans to middle-market companies. The fund seeks to invest in senior investments with a first or second lien on collateral, senior first lien, stretch senior, senior second lien, unitranche, mezzanine debt, junior securities, other junior investments, and secondary purchases of assets or portfolios that primarily consist of middle-market corporate debt. It typically invests in companies with EBITDA between $10 million and $150 million.

BCSF Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Bain Capital Specialty Finance Inc. To summarize, we found that Bain Capital Specialty Finance Inc ranked in the 94th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2574%. In terms of the factors that were most noteworthy in this DCF analysis for BCSF, they are:

• Interest coverage, a measure of earnings relative to interest payments, is 1.13 -- which is good for besting only 19.68% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
• 37% of the company's capital comes from equity, which is greater than only 10.82% of stocks in our cash flow based forecasting set.
• Bain Capital Specialty Finance Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 23.89% of US stocks with positive free cash flow.

For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BCSF, try ESGR, VCTR, NMIH, CUII, and FDUS.