Choose a model
Each card values Prospect Capital a different way, shown at our starting inputs. Pick one to see and change how it works.
Set your assumptions
Prospect Capital on earnings: earnings per share grow for a few years, then the stock trades at a normal price-to-earnings multiple.
Years to project
Growth of earnings per share
Earnings per share; starts at its own recent growth
Exit P/E
Starts at its industry's median P/E
Your desired return
Margin of safety
More
Your buy price
The expected return is measured from it; starts at today's price
How it's worked out
Today's earnings per share
Last twelve months
$0.29
Earnings in 2031
Grows 0.0% a year for 5 years
$0.29
Price in 2031
$0.29 × 12.2 P/E
$3.57
Worth today
÷ 1.10^5: your 10% a year, taken back out
$2.22
Plus dividends
$2.60 paid over 5 years, discounted the same way
+ $1.97
Fair value
The most you can pay and still earn 10% a year
$4.19
Buy below
Fair value minus your 25% margin of safety
$3.14
Paying $1.44 instead gives 33.8% a year. Every rule is on the methodology page.
Outcome
What your assumptions give, and the path from today's price.
Fair value
$4.19
Expected return
33.8% a year
Future price, 2031
$3.57
Buy below
$3.14
Price 66% below fair valuePrice $1.44, at your 10% return
Projection
Solid blue: the price at each year end. Dashed blue: from today's price to the 2031 price. Green: from the fair value, rising at your 10% a year to the same end point; buy at or below it and you earn at least that. Every rule is on the methodology page. A model, not a forecast or advice.
Prospect Capital (PSEC) intrinsic value and fair value
The calculator grows one of Prospect Capital's per-share figures (earnings, free cash flow, revenue, book value or dividends) for a few years, puts an exit multiple on it, and discounts the result back at the yearly return you want. The answers below use its starting inputs for PSEC; this is analysis, not investment advice.
Frequently asked
What is Prospect Capital's (PSEC) intrinsic value?+
With Intrinsiqq's starting inputs, Prospect Capital's fair value is about $4.19 a share, based on its earnings per share. That assumes earnings per share of $0.29 grows about 0.0% a year for 5 years, the stock then trades at 12.2 times earnings, and you want a 10.0% yearly return. On its other figures: dividends $5.20. Every input can be changed on the page; the result is a model, not a forecast.
Is Prospect Capital overvalued?+
At $1.44, the price is 66% below that fair value of $4.19, and buying at today's price would return about 33.8% a year if those inputs hold. Whether that is cheap or dear depends on whether you believe the growth and the exit multiple, which is what the calculator lets you test. This is analysis from SEC filings, not investment advice.
What growth does the Prospect Capital valuation assume?+
Earnings per share grows about 0.0% a year to start, its own recent growth per share (three years for a company not yet profitable, five otherwise). The exit multiple starts at its industry's median.
What is a good margin of safety for Prospect Capital?+
A margin of safety is the cushion you want below the fair value before buying, in case the inputs are wrong. The calculator uses 25%, which puts the buy-below price at $3.14. Less predictable businesses deserve a wider cushion, or a higher desired return.
Held by ETFs
PSEC is in 7 US ETFs. The largest of them, with PSEC's weight in each:
iShares Preferred and Income Securities ETFPFF0.04%of the fund
- PFVirtus InfraCap U.S. Preferred Stock ETFPFFA1.02%of the fund
VanEck BDC Income ETFBIZD1.06%of the fund
Morgan Stanley Pathway Small-Mid Cap Equity ETFMSSM0.02%of the fund
- VPVirtus Private Credit Strategy ETFVPC3.01%of the fund
ProShares Global Listed Private Equity ETFPEX1.34%of the fund
Spot a number that looks wrong? Check it in PSEC's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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