New Mountain Finance Corporation (NMFC) Company Bio
New Mountain Finance Corporation is a is a closed-end, non-diversified management investment firm. The Company's investment objective is to generate current income and capital appreciation through investments in debt securities. The company was founded in 2008 is based in New York, New York.
NMFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NMFC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that New Mountain Finance Corp ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for New Mountain Finance Corp ended up being:
The company has produced more trailing twelve month cash flow than only 17.14% of its sector Financial Services.
42% of the company's capital comes from equity, which is greater than merely 15.27% of stocks in our cash flow based forecasting set.
New Mountain Finance Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive 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 New Mountain Finance Corp? See BSIG, AMK, GDOT, MA, and SLF.
New Mountain Finance on Jan. 4 announced that the business development company's board has authorized an extension of a program for repurchasing up to $50 million worth of its common stock. The company said that the extension of the repurchase program was undertaken to prevent the undervaluation of the company’s share price due to continued market volatility and uncertainty. The repurchase program will be executed by Dec. 31, 2021 or earlier. The timing and number of shares to be repurchased will depend on market conditions and alternative investment opportunities. To date, New Mountain Finance (NMFC) has made repurchases worth $2.9 million under the program.
New Mountain Finance (NMFC) extends its buyback program for the repurchase of up to $50M to Dec. 31, 2021. To date, the company has repurchased ~$2.9M worth of shares under the program."New Mountain Finance is now smaller, but stronger," writes Bashar Issa on Seeking Alpha....