Main Street Capital Corporation (MAIN) Company Bio
Main Street Capital is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The company was founded in 1997 and is based at Houston, Texas.
MAIN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Main Street Capital CORP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Main Street Capital CORP ranked in the 9th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Main Street Capital CORP ended up being:
The company's compound free cash flow growth rate over the past 3.51 years comes in at -0.12%; that's greater than only 15.51% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than only 19.9% of its sector Financial Services.
Main Street Capital CORP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.84. This coverage rate is greater than that of merely 18.05% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MAIN, try ERIE, LYL, MDLY, ICCH, and MN.
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Main Street issued a press release yesterday afternoon that details the company's fourth quarter financial and operating results. Also joining us for the Q&A portion of our call are Vince Foster, our Executive Chairman; and Nick Meserve, our Managing Director and Head of our Middle Market Investment Group.