Sound Point Meridian Capital, Inc. (SPMC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Sound Point Meridian Capital, Inc. stock $8.22, price $5.84, upside +40.8%, quality 45 out of 100. Rating: undervalued. Calculated from audited financials with 2 of our 26 valuation models and 37 quality factors, updated daily.
Sound Point Meridian Capital, LLC operates as a closed-end management investment company in the United States.
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It focuses on investing primarily in equity and mezzanine tranches of collateralized loan obligations, which are collateralized by portfolios consisting primarily of below-investment grade U.S. senior secured loans. The company was founded in 2022 and is based in New York, New York.
Stock analysis
Sound Point Meridian Capital, Inc. (SPMC) currently trades at $5.84, while our model-based Fair Value estimate is $8.22, implying the stock looks roughly 29% undervalued today.
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Valuation
How firm this estimate is: it rests on 2 models at a data quality of 88/100, which puts the data coverage at low.
Scenario range: $6.17 (bear) to $10.28 (bull), the price of $5.84 sits below 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 45/100 (below-average quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Sound Point Meridian Capital, Inc. reported revenue of −$108M in FY2025 versus $64.5M in FY2023. Reported net income was −$126M in FY2025.
Key figures
Market cap $120M Micro · P/S ratio 2.84 · EPS (TTM) $−6.08 · Return on equity −43.5% · Return on assets (EBIT) 6,982% (3-year average) · Operating margin 68.5% · Revenue (TTM) $65.7M · Revenue growth (YoY) −35.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 33 out of 100 (low confidence).
What moves the price
The share trades about 56% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at 41%, SPMC screens cheaper than that median.
Fair Value models
Bear$6.17Fair Value $8.22Bull$10.28
Price $5.84 · Upside +40.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $37,032, on Aug 27, 2026. Over the same period, one person sold shares worth $22,329.
BuyMatthew E. ForstenhauslerDirector3× since Dec 17, 2025: 12,318 shares, avg. $11.86$146,077Aug 27, 2026
SaleMatthew E. ForstenhauslerDirector2,427 shares at $9.20$22,329Aug 26, 2026
BuyStephen KetchumChairman, Director1,000 shares at $11.40$11,400Feb 13, 2026
SaleAssured Guaranty US Holdings Inc.10% owner2× since Jan 12, 2026: 5,834 shares, avg. $14.63$85,349Jan 29, 2026
SaleASSURED GUARANTY LTD10% owner4,867 shares at $14.31$69,641Jan 27, 2026
BuyUjjaval DesaiChief Executive Officer, Director3,162 shares at $13.62$43,052Dec 16, 2025
SaleAssured Guaranty Municipal Holdings Inc.10% owner102 shares at $16.40$1,673Nov 17, 2025
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.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.38/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: only 3 usable fiscal years, at least 4 required
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−2.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.8% a year for the price and −5.2% for the forecasts.
Compare Sound Point Meridian Capital, Inc. with another stock
Price, fair value, quality and upside side by side.
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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
Beats the industry median on 5/10 measures
A mixed picture versus its industry peers.
Valuation
Quality Score45 · Bottom 25%
Fair Value upside+40.8% · Above median
Profitability
Return on assets−33.7% · Bottom 25%
Net margin (12 months)−180.2% · Bottom 25%
Operating margin (12 months)68.5% · Above median
Growth and dividend
Revenue growth (quarter YoY)−35.3% · Bottom 25%
Dividend yield (12 months)31.0% · Top 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
P/B0.61× · Cheaper than median
P/S (12 months)1.83× · Cheapest 25%
Price / free cash flow (fiscal year)17.9× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Sound Point Meridian Capital, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/SPMC
Frequently asked questions
Is Sound Point Meridian Capital, Inc. (SPMC) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $8.22 versus a price of $5.84, about +41% upside (undervalued).
What is the fair value of SPMC?
Our model-based fair value for Sound Point Meridian Capital, Inc. is $8.22 (as of Nov 9, 2026), built from audited fundamentals. The current price: $5.84.
What is the quality score of SPMC?
Sound Point Meridian Capital, Inc. has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sound Point Meridian Capital, Inc. (SPMC)?
Our model-based price target is the fair value of $8.22 (as of Nov 9, 2026) from 2 valuation models. Cautious scenario $6.17, optimistic scenario $10.28. It is a calculation from audited fundamentals, not an analyst target.
What is the Sound Point Meridian Capital, Inc. stock forecast for 2026?
Our models put fair value at $8.22, about +41% upside versus a price of $5.84 (undervalued). Cautious scenario $6.17, optimistic scenario $10.28. The calculation is refreshed regularly with new filings.
What is the revenue of Sound Point Meridian Capital, Inc. (SPMC)?
Sound Point Meridian Capital, Inc. reported trailing-twelve-month revenue of about $65.7M (latest available figure, as of Nov 9, 2026).
What growth is priced into Sound Point Meridian Capital, Inc. (SPMC)?
For today's price to be fair in a discounted-cash-flow model, Sound Point Meridian Capital, Inc. would have to grow free cash flow by +14.4 % per year for five years (discount rate 13.2 %, then slowing evenly to 2 % perpetual growth by year ten). As of Nov 9, 2026.
What discount rate (WACC) does the fair value of SPMC use?
Our models discount Sound Point Meridian Capital, Inc. at 13.2 %: a base by market capitalisation (micro), damped by beta 1.15, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Sound Point Meridian Capital, Inc. that is +14.4 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.2 %) and the same formula as our fair value.
How fast is the sector of Sound Point Meridian Capital, Inc. (SPMC) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Sound Point Meridian Capital, Inc. (+14.4 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sound Point Meridian Capital, Inc. (SPMC)?
The free-cash-flow yield on the price is 5.59 %: that much free cash flow Sound Point Meridian Capital, Inc. produces per unit of market value. When it exceeds the discount rate of our models (13.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sound Point Meridian Capital, Inc. (SPMC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sound Point Meridian Capital, Inc. it is $8.22 per share (as of Nov 9, 2026), against a price of $5.84. It is the blended result of 2 valuation models in 2 families (Multiples, Asset-Based).
Is Sound Point Meridian Capital, Inc. stock overvalued or undervalued in 2026?
As of Nov 9, 2026, SPMC trades below its calculated fair value: price $5.84, fair value $8.22, a gap of about +41% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SPMC?
No. The price is what the market pays today ($5.84); the fair value is what the company's own numbers justify ($8.22). For Sound Point Meridian Capital, Inc. the two are $2.38 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sound Point Meridian Capital, Inc. worth?
The market values Sound Point Meridian Capital, Inc. at about $120M (market capitalisation, as of Nov 9, 2026). Per share that is $5.84; our models calculate a fair value of $8.22 per share.
What do the bullish and bearish scenarios say about SPMC?
Our models span a range for Sound Point Meridian Capital, Inc.: cautious scenario $6.17, base $8.22, optimistic $10.28 per share (as of Nov 9, 2026, price $5.84). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Sound Point Meridian Capital, Inc. (SPMC)?
Balance-sheet figures for Sound Point Meridian Capital, Inc. (as of Nov 9, 2026): return on equity −43.5%. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is SPMC from its 52-week high?
Sound Point Meridian Capital, Inc. trades at $5.84, about 56% below its 52-week high of $13.21 and 6% above the low of $5.50 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $8.22 is for.
Which stocks are comparable to Sound Point Meridian Capital, Inc.?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sound Point Meridian Capital, Inc. stock attractive at the current price?
The data as of Nov 9, 2026: price $5.84, calculated fair value $8.22 (+41%), Quality Score 45/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SPMC calculated?
We run Sound Point Meridian Capital, Inc. through 2 models from 2 families: Multiples, Asset-Based. Every model gets the same audited fundamentals; the fair value of $8.22 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Sound Point Meridian Capital, Inc. currently trades 29% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sound Point Meridian Capital, Inc. (SPMC)?
The closing price on Nov 6, 2026 was $5.84. Our model-based fair value is $8.22, about +41% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sound Point Meridian Capital, Inc. right now?
The large discount to fair value meets weak quality (45/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case ($6.17). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of Sound Point Meridian Capital, Inc.
How large is the market capitalisation of Sound Point Meridian Capital, Inc. (SPMC)?
The market capitalisation of Sound Point Meridian Capital, Inc. is $120M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sound Point Meridian Capital, Inc. (SPMC)?
The price-to-sales ratio of Sound Point Meridian Capital, Inc. is 2.84 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sound Point Meridian Capital, Inc. (SPMC)?
Earnings per share at Sound Point Meridian Capital, Inc. are $−6.08. Earnings per share over the last twelve months: total profit spread across every single share.
What is the return on equity of Sound Point Meridian Capital, Inc. (SPMC)?
The return on equity (ROE) of Sound Point Meridian Capital, Inc. is −43.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sound Point Meridian Capital, Inc. (SPMC)?
On an EBIT basis the return on assets of Sound Point Meridian Capital, Inc. is 6,982% (avg 3y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sound Point Meridian Capital, Inc. (SPMC)?
The operating margin of Sound Point Meridian Capital, Inc. is 68.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sound Point Meridian Capital, Inc. (SPMC)?
Revenue at Sound Point Meridian Capital, Inc. is growing −35.3% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sound Point Meridian Capital, Inc. (SPMC)?
Earnings per share at Sound Point Meridian Capital, Inc. are growing +75.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Sound Point Meridian Capital, Inc. (SPMC) carry?
The net debt of Sound Point Meridian Capital, Inc. is $54.2M (fiscal year 2025, ≈ 8.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 9, 2026