Capital Southwest Corporation (CSWC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+290.8%

$91.57

vs $23.43 price

Levered DCF

-$237.13

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.91

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	11.17×	15.18×	12.05×	16.16×	12.69×	8.3×	-9.21×	10.92×
P/B	1.24×	1.2×	1.33×	0.9×	1.29×	1.26×	0.76×	1.11×
P/S	5.08×	6.46×	6.61×	5.91×	5.27×	5.82×	13.18×	5.92×
EV / EBITDA	12.13×	23.12×	19.62×	26.85×	21.58×	13.42×	-36.03×	16.08×
Gross margin	94.3%	66.4%	71.7%	68.0%	80.6%	100.0%	-1.5%	80.1%
Operating margin	76.9%	48.5%	55.6%	44.4%	45.5%	76.6%	-103.5%	55.6%
Net margin	45.9%	43.1%	54.8%	36.6%	41.6%	70.1%	-143.3%	54.1%
Current ratio	0×	0×	0×	0×	0×	0×	0×	0×
Debt / equity	1.12×	1.08×	1.02×	1.08×	1.26×	1.13×	1.11×	0.66×
Interest coverage	2.84×	1.44×	1.96×	1.39×	2.35×	3.1×	-1.02×	2.79×
Dividend yield	11.8%	11.8%	10.2%	13.3%	10.8%	13.9%	24.5%	11.8%
Payout ratio	130.3%	177.6%	123.4%	214.9%	136.9%	115.2%	-225.2%	128.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.2%	8.0%	11.0%	5.6%	10.2%	15.1%	-8.2%	10.1%
Return on invested capital	8.2%	3.7%	5.4%	2.6%	4.4%	6.9%	-2.8%	6.0%
Return on assets	5.2%	3.7%	5.4%	2.6%	4.4%	6.9%	-3.8%	6.0%
Free cash flow yield	-15.5%	-20.7%	-18.7%	-42.6%	-34.1%	-43.7%	12.1%	-26.2%
Earnings yield	9.0%	6.7%	8.3%	6.2%	7.9%	12.0%	-10.9%	9.1%
Enterprise value	$2.4B	$2B	$1.7B	$1.1B	$1.1B	$772.1M	$495.1M	$567.8M
Net debt / EBITDA	5.68×	10.7×	8.31×	14.39×	10.54×	6.08×	-21.07×	5.84×
Cash conversion cycle (days)	52	72	72	77	51	54	244	63