With a one year PEG ratio of 210.86, Prospect Capital Corp is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 84.46% of US stocks.
For PSEC, its debt to operating expenses ratio is greater than that reported by 98.76% of US equities we're observing.
Prospect Capital Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 25.18%, greater than the shareholder yield of 89.99% of stocks in our set.
Stocks that are quantitatively similar to PSEC, based on their financial statements, market capitalization, and price volatility, are ASR, FDUS, HCAP, OCSI, and OFS.
Prospect Capital Corporation invests primarily in first and second lien secured loans and unsecured debt, senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. The company was founded in 1988 and is based in New York, New York.
PSEC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Prospect Capital Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Prospect Capital Corp ranked in the 86th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1081.83%. The most interesting components of our discounted cash flow analysis for Prospect Capital Corp ended up being:
The company's compound free cash flow growth rate over the past 5.01 years comes in at 0.57%; that's greater than 82.59% of US stocks we're applying DCF forecasting to.
Prospect Capital 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.
The weighted average cost of capital for the company is 10. This value is greater than 74.8% stocks in the Financial Services sector that generate free cash flow.
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 PSEC, try GAIN, AINC, RM, CNO, and MFC.
Prospect Capital (PSEC) starts a cash tender offer for any and all of its $228.8M of 4.95% senior convertible notes due 2022 outstanding.Consideration to be paid for each $1,010 principal amount of notes validly tendered will be $1,000.00, plus accrued and unpaid interest, if any.The tender offer will expire at...
Prospect Capital Corporation (PSEC) Q4 2020 Earnings Conference Call August 27, 2020 11:00 AM ET Company Participants John Barry - Chairman & Chief Executive Officer Grier Eliasek - President & Chief Operating Officer Kristin Van Dask - Chief Financial Officer Conference Call Participants Robert Dodd - Raymond James Finian O'Shea...
NEW YORK, July 23, 2020 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (the “Company”) today announced that it has commenced a cash tender offer (the “Tender Offer”) to purchase up to $100,000,000 aggregate principal amount of outstanding 4.95% Senior Convertible Notes due 2022 (the “Notes”). The Tender Offer will expire at 12:00 midnight, New York City time, on August 20, 2020 (one minute after 11:59 p.m., New York City time, on August 19, 2020), or any other date and time to which the Company extends the Tender Offer (such date and time, as it may be extended, the “Expiration Date”). The Tender Offer is made pursuant to an Offer to Purchase dated today, which sets forth the terms and conditions of the Tender Offer. Title of Security CUSIP / ISIN Nos.Outstanding Principal AmountAgg...