Capital Southwest Corporation (CSWC) Fair Value & Analysis

Financial Services · US · Market cap $1.4B

Below-average quality, and screening another 23% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($24.20). The favourable scenario is already priced in.
• Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 26, 2026.

How to read this chart

60‑month range $10.90 – $25.13 · fair‑value band $14.52 – $24.20 · the $25.13 price screens above the $19.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 26, 2026.

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Analysis

Capital Southwest Corporation (CSWC) currently trades at $25.13, while our model-based Fair Value estimate is $19.36, implying the stock looks roughly 23.0% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Capital Southwest Corporation generated revenue of $232M at a net margin of 48.7%. Revenue declined 4.0% year over year. It earns a return on equity of 11.9%. Net debt stands at $1.1B. Fundamentals as of Jul 26, 2026

Our scenario range runs from $14.52 (bear case) to $24.20 (bull case); at $25.13, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at -23%, CSWC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Earnings-Based ($51.97) versus Asset-Based ($10.90). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Capital Southwest Corporation is a business development company. 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.

Full company description

Capital Southwest Corporation is a business development company. 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

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

CSWC screens 23% overvalued. Compare with Fondul Proprietatea SA →

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Are Finance Stocks Lagging Capital Southwest (CSWC) This Year? Yahoo Finance · Jul 29, 2026
• Capital Southwest (CSWC) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release Yahoo Finance · Jul 27, 2026
• Capital Southwest Shareholders Elect Directors, Adjourn Vote on Share Increase Yahoo Finance · Jul 22, 2026
• Capital Southwest (CSWC): Buy, Sell, or Hold Post Q1 Earnings? Yahoo Finance · Jul 16, 2026

Peer Group

Asset Management · 973 stocks

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.

Valuation Multiples vs Asset Management median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.