PennantPark Investment Corporation (PNNT) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of PennantPark Investment Corporation $6.88, price $3.41, upside +101.8%, quality 60 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $2.80 – $5.96 · fair‑value band $4.20 – $9.84 · the $3.41 price screens below the $6.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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PennantPark Investment Corporation, a business development company is a private equity fund specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments.
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PennantPark Investment Corporation, a business development company is a private equity fund specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments. The fund typically invests in buildings and real estate, hotels, gaming and leisure, technology, telecommunications, transportation, information technology services, electronics, healthcare & pharmaceuticals, education and childcare, financial services, printing and publishing, consumer products, business services, energy & Related Services and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, building materials, capital equipment, chemicals, plastics, & rubber, food & beverage, wholesale, manufacturing and basic industries and retail. It invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, senior secured debt, subordinated debt, subordinated loans, first lien debt, mezzanine loans, and distressed debt securities and private equity co-investments. It seeks to invest in companies based in the United States. The fund seeks to invest between $10 million and $100 million cross the capital structure (senior secured loans, subordinated debt, and other investments) in its portfolio companies with EBITDA between $10 to $50 million. The fund invest upto $250 million in equity investment. The fund prefers to invest in middle market companies companies having revenue between $50 million and $ 1000 million. Its mezzanine loans, senior secured loans, and other investments in its portfolio companies are between $15 million and $50 million. The fund may also make non-control equity and debt investments.
Stock analysis
PennantPark Investment Corporation (PNNT) currently trades at $3.41, while our model-based Fair Value estimate is $6.88, implying the stock looks roughly 50.4% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $15.65 per share, and 9 of the 9 models we run sit above the $3.41 price.
Bear case: the Earnings-Based group reads lowest at $4.43, and 0 of the 9 models stay below the price. Evidence for this calculation is high.
Scenario range: $4.20 (bear) to $9.84 (bull), the price of $3.41 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 60/100 (solid quality), in the Financial Services sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
PennantPark Investment Corporation reported revenue of $83.1M in FY2025 versus $171M in FY2021, a compound −16.5%/yr. Reported net income was $32.7M in FY2025, compounding −33.4%/yr from FY2021.
Key figures
Market cap $218M · P/E ratio 22.7 · P/S ratio 8.96 · EPS (TTM) $0.1500 · Net margin 39.4% · Return on equity 2.2% · Return on assets (EBIT) 3.6% · Operating margin 72.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 37 out of 100 (medium confidence).
What moves the price
The share trades about 39% below its 52-week high and 9% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −4% fair-value upside, at 102%, PNNT screens cheaper than that median.
Fair Value models
Bear $4.20Fair Value $6.88Bull $9.84
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.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.Evidence ⓘEvidence = 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.
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.37/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−19.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−7.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.7%
Start year 2020 (pandemic). Over 10 years: −6.4% a year
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+9.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.2%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−18% vs −6%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−15% → 43%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 1.6%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more 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).
+8.6%
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.
+4.5%
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 +6.1% a year for the price and +2.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (71 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare PennantPark Investment Corporation 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 · 657 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside+102% · Top 25%
Profitability
Return on equity (TTM)2% · Below median
Return on assets4% · Above median
Net margin (TTM)10% · Below median
Operating margin (TTM)72% · Above median
Growth and dividend
Revenue growth−16% · Bottom 25%
Dividend yield (TTM)23.5% · Top 25%
Balance sheet
Debt / equity0.66× · Highest 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
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Is PennantPark Investment Corporation (PNNT) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $6.88 versus a price of $3.41, about +102% upside (undervalued).
What is the fair value of PNNT?
Our model-based fair value for PennantPark Investment Corporation is $6.88 (as of Sep 23, 2026), built from audited fundamentals. The current price: $3.41.
What is the quality score of PNNT?
PennantPark Investment Corporation has a Quality Score of 60/100. 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 PennantPark Investment Corporation (PNNT)?
Our model-based price target is the fair value of $6.88 (as of Sep 23, 2026) from 9 valuation models. Cautious scenario $4.20, optimistic scenario $9.84. It is a calculation from audited fundamentals, not an analyst target.
What is the PennantPark Investment Corporation stock forecast for 2026?
Our models put fair value at $6.88, about +102% upside versus a price of $3.41 (undervalued). Cautious scenario $4.20, optimistic scenario $9.84. The calculation is refreshed regularly with new filings.
What is the revenue of PennantPark Investment Corporation (PNNT)?
PennantPark Investment Corporation reported trailing-twelve-month revenue of about $105M (latest available figure, as of Sep 23, 2026).
What growth is priced into PennantPark Investment Corporation (PNNT)?
For today's price to be fair in a discounted-cash-flow model, PennantPark Investment Corporation would have to grow free cash flow by +8.6 % per year for five years (discount rate 11.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -3.7 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of PNNT use?
Our models discount PennantPark Investment Corporation at 11.5 %: a base by market capitalisation (micro), damped by beta 0.63, 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 PennantPark Investment Corporation that is +8.6 % per year a year over ten years, using the same discount rate (11.5 %) and the same formula as our fair value.
How much growth has PennantPark Investment Corporation (PNNT) delivered so far?
Over the past 5 years revenue at PennantPark Investment Corporation grew -3.7 % a year. The price currently implies +8.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of PennantPark Investment Corporation (PNNT) growing?
The median revenue growth in the sector is +8.3 % a year. That is the yardstick for the growth priced into PennantPark Investment Corporation (+8.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of PennantPark Investment Corporation (PNNT)?
The free-cash-flow yield on the price is 30.31 %: that much free cash flow PennantPark Investment Corporation produces per unit of market value. When it exceeds the discount rate of our models (11.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of PennantPark Investment Corporation (PNNT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PennantPark Investment Corporation it is $6.88 per share (as of Sep 23, 2026), against a price of $3.41. It is the blended result of 9 valuation models (cash flow, earnings, asset, dividend).
Is PennantPark Investment Corporation stock overvalued or undervalued in 2026?
As of Sep 23, 2026, PNNT trades below its calculated fair value: price $3.41, fair value $6.88, a gap of about +102% (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 PNNT?
No. The price is what the market pays today ($3.41); the fair value is what the company's own numbers justify ($6.88). For PennantPark Investment Corporation the two are $3.47 per share apart. That gap is exactly why we show both numbers side by side.
How much is PennantPark Investment Corporation worth?
The market values PennantPark Investment Corporation at about $218M (market capitalisation, as of Sep 23, 2026). Per share that is $3.41; our models calculate a fair value of $6.88 per share.
What do the bullish and bearish scenarios say about PNNT?
Our models span a range for PennantPark Investment Corporation: cautious scenario $4.20, base $6.88, optimistic $9.84 per share (as of Sep 23, 2026, price $3.41). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PNNT?
PennantPark Investment Corporation trades at a price-to-earnings ratio of 22.7 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $6.88 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 4.9 (reported 6.8). Other multiples: PEG 0.3, P/B 0.5, P/S 2.1, EV/EBITDA 13.5.
What is the PEG ratio of PNNT?
The PEG ratio of PennantPark Investment Corporation is 0.28 (P/E divided by earnings growth, as of Sep 23, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of PennantPark Investment Corporation (PNNT)?
Balance-sheet figures for PennantPark Investment Corporation (as of Sep 23, 2026): return on equity 2.2%, debt of 0.66 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is PNNT from its 52-week high?
PennantPark Investment Corporation trades at $3.41, about 39% below its 52-week high of $5.57 and 9% above the low of $3.13 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $6.88 is for.
Which stocks are comparable to PennantPark Investment Corporation?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Corporation, 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 PennantPark Investment Corporation stock attractive at the current price?
The data as of Sep 23, 2026: price $3.41, calculated fair value $6.88 (+102%), Quality Score 60/100, from 9 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 PNNT calculated?
We run PennantPark Investment Corporation through 9 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $6.88, 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 13.0 % above its aggregate fair value. PennantPark Investment Corporation currently trades 102 % 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 PennantPark Investment Corporation (PNNT)?
The closing price on Sep 23, 2026 was $3.41. Our model-based fair value is $6.88, about +102% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with PennantPark Investment Corporation right now?
The price is below even our cautious bear case ($4.20). The market is more pessimistic than our downside scenario. Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($4.20 to $9.84) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of PennantPark Investment Corporation (PNNT) come from?
Earnings per share at PennantPark Investment Corporation grew −4.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.2 %, EBIT margin −9.7 %, tax rate −0.5 %, residual (interest, one-offs) +3.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of PennantPark Investment Corporation
How large is the market capitalisation of PennantPark Investment Corporation (PNNT)?
The market capitalisation of PennantPark Investment Corporation is $218M. 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 PennantPark Investment Corporation (PNNT)?
The price-to-sales ratio of PennantPark Investment Corporation is 8.96 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of PennantPark Investment Corporation (PNNT)?
Earnings per share at PennantPark Investment Corporation are $0.1500 (price ÷ EPS = P/E 22.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of PennantPark Investment Corporation (PNNT)?
The net margin of PennantPark Investment Corporation is 39.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of PennantPark Investment Corporation (PNNT)?
The return on equity (ROE) of PennantPark Investment Corporation is 2.2% (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 PennantPark Investment Corporation (PNNT)?
On an EBIT basis the return on assets of PennantPark Investment Corporation is 3.6% (avg 5y). 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 PennantPark Investment Corporation (PNNT)?
The operating margin of PennantPark Investment Corporation is 72.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at PennantPark Investment Corporation (PNNT)?
Revenue at PennantPark Investment Corporation is growing −16.2% versus a year earlier (3y avg −7.5%). 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 PennantPark Investment Corporation (PNNT)?
Earnings per share at PennantPark Investment Corporation are growing −45.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does PennantPark Investment Corporation (PNNT) carry?
The net debt of PennantPark Investment Corporation is $687M (fiscal year 2025, ≈ 10.4 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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Broad data
Sep 23, 2026