Capital Southwest Corporation (CSWC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Capital Southwest Corporation stock $19.59, price $23.26, that is 15.8% below the price, quality 36 out of 100. Rating: overvalued. Calculated from audited financials with 9 of our 26 valuation models and 37 quality factors, updated daily.
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Capital Southwest Corporation
CSWC · USOur calculation puts a fair price 16% below what the stock costs today.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $10.53 – $25.09 · fair‑value band $14.70 – $24.49 · the $23.26 price screens above the $19.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Company profile
Capital Southwest Corporation is a business development company.
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The firm specializes in credit and private equity and venture capital investments in lower middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments.
The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing.
In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations.
The investment structures are unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20 percent of total check and only makes non-control investments.
The firm is industry agnostic, but it prefers to invest in industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models.
The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products.
Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production, with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals.
Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within specialty ch
Stock analysis
Capital Southwest Corporation (CSWC) currently trades at $23.26, while our model-based Fair Value estimate is $19.59, 16% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $77.35 per share, and 5 of the 9 models we run sit above the $23.26 price.
Bear case: the Asset-Based group reads lowest at $10.63, and 4 of the 9 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $14.70 (bear) to $24.49 (bull), the price of $23.26 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 36/100 (below-average quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Capital Southwest Corporation reported revenue of $246M in FY2026 versus $103M in FY2022, a compound +24.3%/yr. Reported net income was $113M in FY2026, compounding +27.5%/yr from FY2022.
Key figures
Market cap $1.6B Small · P/E ratio 13.6 · P/S ratio 6.91 · EPS (TTM) $1.71 · Dividend yield 10.0% · Net margin 46.7% · Return on equity 11.2% · Return on assets (EBIT) 5.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (medium confidence).
What moves the price
The share trades about 7% below its 52-week high and 28% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −16%, CSWC screens cheaper than that median.
Fair Value models
All 9 models by family
The fair value above starts from this blend and is adjusted for dilution from new shares.
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 3 officers or directors bought shares worth $196,971, most recently on Oct 1, 2026. Over the same period, one person sold shares worth $108,555. Buying cluster
- BuyWilliam R Thomas IIIDirector2× since Jun 5, 2026: 7,170 shares, avg. $23.29$167,005Oct 1, 2026
- BuyRamona Lynn Rogers-WindsorDirector2× since Jun 1, 2026: 424 shares, avg. $23.56$9,988Jun 30, 2026
- BuyChristine BattistDirector2× since Feb 9, 2026: 1,460 shares, avg. $23.20$33,874Jun 17, 2026
- SaleWilliam R Thomas IIIDirector4,661 shares at $23.29$108,555Jun 5, 2026
- BuyMichael Scott SarnerPresident and CEO, Director2,695 shares at $21.90$59,013Feb 27, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗
Revenue & earnings trend
CSWC screens overvalued: fair value 16% below the price. Compare with Blackstone Inc →
Recent news
- Capital Southwest: Fiscal Q2 Earnings Snapshot
- Capital Southwest's FQ2 realized, unrealized losses on investments hit earnings
- Capital Southwest (CSWC) Q3 earnings report preview: what to look for
- Earnings Preview: Capital Southwest (CSWC) Q2 Earnings Expected to Decline
Compare Capital Southwest Corporation with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Asset Management · 587 stocks
Valuation Multiplesvs Asset Management median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Financials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- EV/EBITDA by industry
- Dividend yield by industry
- PEG screener for stocks with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Asset Management stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Exor N.V EXO | €73.35 | €139.37 | +90% | vs CSWC |
| Raymond James Financial, Inc RJF | $162.81 | $281.42 | +73% | vs CSWC |
| Apollo Global Management, Inc APO | $116.75 | $197.52 | +69% | vs CSWC |
| Ameriprise Financial, Inc AMP | $501.49 | $609.56 | +22% | vs CSWC |
| State Street Corporation STT | $165.56 | $139.37 | −16% | vs CSWC |
| Ares Management Corporation ARES | $133.98 | $99.35 | −26% | vs CSWC |
| Northern Trust Corporation NTRS | $172.76 | $123.42 | −29% | vs CSWC |
| Brookfield Asset Management Ltd BAM | $52.95 | $31.26 | −41% | vs CSWC |
| Blackstone Inc BX | $119.50 | $52.29 | −56% | vs CSWC |
| KKR & Co KKR | $96.48 | $27.32 | −72% | vs CSWC |
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Frequently asked questions
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Key figures of Capital Southwest Corporation
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