Hercules Capital Inc (HCXY) 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

+343.5%

$73.56

vs $16.59 price

Levered DCF

-$54.14

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.97

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.91×	12.48×	7.19×	16.53×	11.06×	7.14×	8.2×	13.31×
P/B	1.54×	1.63×	1.33×	1.18×	1.45×	1.25×	1.25×	1.05×
P/S	6.22×	7.51×	4.86×	6.91×	6.15×	4.52×	4.75×	5.72×
EV / EBITDA	15.46×	18.64×	11.44×	31.47×	17.28×	11.91×	15.25×	25.22×
Gross margin	87.2%	82.1%	86.3%	77.1%	82.4%	83.3%	81.7%	77.5%
Operating margin	66.7%	61.0%	68.3%	42.6%	56.3%	63.6%	58.2%	43.6%
Net margin	62.1%	61.0%	68.3%	42.6%	56.3%	63.6%	58.2%	43.6%
Current ratio	1.44×	1.37×	1×	1.23×	0.36×	7.06×	4.46×	0.65×
Debt / equity	1.04×	0.9×	0.87×	1.13×	0.95×	1×	1.15×	1.01×
Interest coverage	3.96×	3.41×	4.99×	1.86×	3.2×	3.81×	3.18×	1.94×
Dividend yield	9.6%	9.4%	11.4%	14.8%	9.2%	9.4%	9.3%	11.2%
Payout ratio	96.0%	115.4%	81.1%	240.1%	100.8%	67.1%	76.1%	147.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.3%	13.2%	18.7%	7.3%	13.3%	17.6%	15.3%	8.0%
Return on invested capital	835.3%	653.1%	10.0%	3.4%	6.8%	8.8%	7.1%	4.0%
Return on assets	7.4%	6.9%	9.9%	3.4%	6.7%	8.7%	7.1%	3.9%
Free cash flow yield	-12.5%	-3.7%	2.8%	-25.7%	6.8%	12.9%	-17.0%	-24.8%
Earnings yield	10.0%	8.1%	14.1%	6.2%	9.1%	14.1%	12.2%	7.6%
Enterprise value	$5.6B	$4.9B	$3.9B	$3.2B	$3B	$2.7B	$2.7B	$1.9B
Net debt / EBITDA	6.15×	6.35×	4.33×	15.29×	6.37×	4.82×	7.1×	12.12×
Cash conversion cycle (days)	-316	-232	-250	-261	-262	-203	-178	-205