Runway Growth Finance Corp. (RWAY) 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

+1409.4%

$97.81

vs $6.48 price

Levered DCF

$65.40

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

0.27

Distress zone

Rating

C+

Overall 2 / 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	9.6×	5.8×	11.58×	14.67×	9.64×	11.32×	19.25×	46.07×
P/B	0.68×	0.83×	0.93×	0.82×	0.84×	1.14×	1.42×	1.73×
P/S	2.34×	3.43×	5.41×	8.61×	9.4×	10.18×	16.24×	36.6×
EV / EBITDA	9.9×	13.21×	21.5×	31.57×	12.64×	8.74×	19.65×	56.61×
Gross margin	78.5%	69.1%	59.1%	75.1%	92.2%	98.0%	96.4%	96.3%
Operating margin	54.7%	59.3%	46.9%	58.5%	84.5%	89.6%	84.1%	80.6%
Net margin	24.3%	59.3%	46.9%	58.5%	84.5%	89.6%	84.1%	80.6%
Current ratio	1.22×	1.79×	1.66×	2.34×	0.18×	0.26×	0.64×	0.6×
Debt / equity	0.93×	1.07×	0.93×	0.95×	0.13×	0.21×	0.16×	0.45×
Interest coverage	1.8×	1.66×	1.15×	2.34×	10.88×	44.15×	23.3×	22.07×
Dividend yield	15.7%	16.4%	14.3%	10.9%	3.5%	1.4%	1.5%	0.3%
Payout ratio	151.1%	94.9%	165.4%	160.0%	39.3%	15.5%	29.6%	12.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.0%	14.3%	8.1%	5.6%	7.5%	10.1%	7.3%	3.8%
Return on invested capital	8.2%	6.8%	4.1%	2.8%	6.6%	8.2%	6.3%	3.8%
Return on assets	3.5%	6.7%	4.1%	2.8%	6.2%	7.3%	5.4%	8.5%
Free cash flow yield	56.9%	11.9%	22.0%	10.3%	-12.1%	-19.9%	-25.0%	-32.4%
Earnings yield	10.4%	17.3%	8.7%	6.8%	9.0%	8.8%	5.2%	2.2%
Enterprise value	$759.5M	$972.4M	$1B	$1B	$582.4M	$616.3M	$548M	$670.2M
Net debt / EBITDA	5.63×	7.43×	10.71×	16.84×	1.62×	1.17×	0.51×	11.52×
Cash conversion cycle (days)	-62	-50	-32	-107	-3,904	-24,032	-23,076	-211,207