Prospect Capital Corporation (PSEC) 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

-298.0%

-$3.21

vs $1.62 price

Levered DCF

-$4.42

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.15

Distress zone

Rating

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	38.5×	-2.36×	15.25×	-14.42×	4.89×	3.34×	-115.87×	16.9×
P/B	0.25×	0.47×	0.62×	0.66×	0.66×	0.81×	0.62×	0.73×
P/S	1.73×	-5.06×	4.91×	28.3×	3.69×	2.8×	11.24×	7.01×
EV / EBITDA	10.32×	-7.32×	17.68×	-48.85×	9.33×	5.58×	-244.95×	32.44×
Gross margin	79.7%	147.0%	68.7%	-69.8%	84.1%	88.6%	11.3%	54.3%
Operating margin	51.0%	169.8%	56.2%	-116.4%	78.7%	84.0%	-9.7%	42.0%
Net margin	24.0%	169.8%	56.2%	-116.4%	78.7%	84.0%	-9.7%	42.0%
Current ratio	0.11×	0.51×	0.68×	0.77×	0.29×	1.78×	1.14×	2.46×
Debt / equity	0.41×	0.7×	0.66×	0.69×	0.66×	0.57×	0.7×	0.72×
Interest coverage	2.51×	-3.61×	1.79×	-0.69×	4.96×	7.38×	-0.11×	0.92×
Dividend yield	30.3%	23.7%	15.7%	12.1%	9.9%	6.1%	12.8%	10.2%
Payout ratio	218.4%	-70.7%	137.1%	-294.3%	46.4%	20.3%	-1479.0%	169.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	3.4%	-15.7%	7.1%	-2.7%	14.1%	24.4%	-0.5%	4.4%
Return on invested capital	5.1%	-7.0%	3.4%	-1.3%	7.7%	15.4%	-0.3%	2.5%
Return on assets	2.4%	-6.9%	3.3%	-1.3%	7.6%	15.3%	-0.3%	2.5%
Free cash flow yield	46.6%	37.4%	12.2%	-8.9%	-29.1%	1.0%	22.8%	9.3%
Earnings yield	13.9%	-33.6%	11.5%	-4.1%	21.3%	30.0%	-0.9%	6.0%
Enterprise value	$2.9B	$3.4B	$4.6B	$5B	$5.4B	$5.4B	$4B	$4.7B
Net debt / EBITDA	6.41×	-4.34×	8.95×	-24.54×	4.65×	2.25×	-129.01×	15.75×
Cash conversion cycle (days)	-91	-123	-117	-132	-156	-133	-99	-99