The ratio of debt to operating expenses for Prospect Capital Corp is higher than it is for about 98.61% of US stocks.
The volatility of Prospect Capital Corp's share price is greater than that of only 0.25% US stocks with at least 200 days of trading history.
Prospect Capital Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 28.38%, greater than the shareholder yield of 92.42% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Prospect Capital Corp are OCSL, PNNT, ASR, SLRC, and TSLX.
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:
Below please find a table outlining a discounted cash flow forecast for PSEC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Prospect Capital Corp ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for PSEC, they are:
The compound growth rate in the free cash flow of Prospect Capital Corp over the past 4.46 years is 0.85%; that's higher than 92.64% of free cash flow generating stocks in the Financial Services sector.
51% of the company's capital comes from equity, which is greater than only 23.92% of stocks in our cash flow based forecasting set.
Prospect Capital Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive 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 EV, AEL, TPRE, RDN, and FRHC.