Medley Capital Corporation is a business development company. The fund seeks to invest in privately negotiated debt and equity securities of small and middle market companies. The company was founded in 2010 and is based in New York City, New York.
MCC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Medley Capital Corp. To summarize, we found that Medley Capital Corp ranked in the 95th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4188.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Medley Capital Corp, consider:
20% of the company's capital comes from equity, which is greater than only 8.88% of stocks in our cash flow based forecasting set.
Medley Capital Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.29. This coverage rate is greater than that of only 11.05% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Medley Capital Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than merely 0% of stocks generating free cash flow.
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 Medley Capital Corp? See RDN, COHN, ELVT, NOAH, and FRHC.
In a move to materially reduce expenses, Medley Capital's (MCC) advisers agree to an expense support agreement that will cap their management fee and all of MCC's other operating expenses at $677,000 per month.The cap excludes interest expenses, certain extraordinary strategic transaction expenses, and other expenses approved by the special...
Medley Capital Corporation (MCC) (MCC) (the “Company”) announced today that, on June 12, 2020, the board of directors of the Company (the “Board”), including its special committee (the “Special Committee”), has approved an expense support agreement (the “Expense Support Agreement”) under which MCC Advisors LLC and Medley LLC agreed (jointly and severally) to cap the management fee and all of the Company’s other operating expenses (except interest expenses, certain extraordinary strategic transaction expenses, and other expenses approved by the Special Committee at $667,000 per month (the “Cap”). The Cap is expected to result in a material reduction in the Company’s expenses.
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(Bloomberg) -- Business development company Medley Capital Corp. has renewed its push to find a buyer after its deal with Sierra Income Corp. collapsed last month, according to people with knowledge of the matter.Houlihan Lokey Inc., the New York-based company’s financial adviser, has canvassed potential suitors in recent weeks to gauge their interest in the lender, said the people, who asked to not be identified because the talks are private.No final decision has been made and Medley Capital could opt to remain independent, the people said.Medley Capital rose 19% to 78 cents per share at 10:28 a.m. in New York, giving the company a market value of about $42 million. The stock had gained as much as 22%. Representatives for Medley Capital and Houlihan Lokey declined to comment.Medley Cap...