Fifth Street Asset Management Inc. - (FSAM) Company Bio
Fifth Street Asset Management is a is a credit-focused asset manager that originates debt investments through private equity transactions. The company was founded in 1998 and is based in Greenwich, Connecticut.
FSAM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FSAM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Fifth Street Asset Management Inc ranked in the 55th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 27.5%. As for the metrics that stood out in our discounted cash flow analysis of Fifth Street Asset Management Inc, consider:
Its compound free cash flow growth rate, as measured over the past 2.63 years, is -0.36% -- higher than only 3.66% of stocks in our DCF forecasting set.
As a business, FSAM is generating more cash flow than only 9.95% of positive cash flow stocks in the Financial Services.
Fifth Street Asset Management Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.16% of tickers in our DCF 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 Fifth Street Asset Management Inc? See SLF, WDR, AFL, BRK.B, and PTMN.
The Company’s audit can be found on the Investor Relations section of FSAM’s website, www.fifthstreetfinance.com. Prior to the closing of the asset sale to Oaktree Capital Management, L.P. on October 17, 2017, Fifth Street Asset Management Inc. was a nationally recognized credit-focused asset manager.
Moody's Investors Service (Moody's) has assigned a Baa3 long-term issuer rating to Oaktree Specialty Lending Corporation (OCSL), a publicly traded business development company (BDC) externally managed by Oaktree Capital Management, L.P. (Oaktree), a global investment management firm headquartered in Los Angeles, CA. OCSL's issuer outlook is stable.
Accordingly, an FSAM investor that sells shares of FSAM common stock prior to the payment date of January 30, 2020 will not receive the distribution for the FSAM shares that are sold. On December 20, 2019, FSAM received $32.8 million of an original $32 million cash escrow account that was established in connection with FSAM’s asset sale to Oaktree Capital Management, L.P. on October 17, 2017.