Fidus Investment Corp provides customized debt and equity financing solutions to lower middle market companies. The company was founded in 2007 and is based in Evanston, IL.
FDUS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for FIDUS INVESTMENT Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that FIDUS INVESTMENT Corp ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1050.5%. In terms of the factors that were most noteworthy in this DCF analysis for FDUS, they are:
The compound growth rate in the free cash flow of FIDUS INVESTMENT Corp over the past 4.24 years is 0.65%; that's higher than 91.34% of free cash flow generating stocks in the Financial Services sector.
48% of the company's capital comes from equity, which is greater than merely 22.42% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of FIDUS INVESTMENT Corp? See JEF, SLRC, AEL, AAME, and MFC.
Introduction This article is part of a series discussing how to build a retirement portfolio using Business Development Companies ("BDCs") currently yielding almost 12% and their safer notes - baby bonds/preferred shares with yield-to-maturities ranging from 6.5% to 10.0%. Please see the end of the article for a list of...
The BDC sector has been among the harder-hit industries since the start of the pandemic. Amidst the rubble, I believe there are some value opportunities to be had. One BDC company that has been left behind is Fidus Investment (FDUS). Looking at the stock chart below, it’s clear that shares...