Palmer Square Capital BDC Inc. (PSBD) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Palmer Square Capital BDC Inc. $7.79, price $10.37, upside -24.9%, quality 58 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 24, 2026.
How to read this chart
32‑month range $9.32 – $13.10 · fair‑value band $4.57 – $13.36 · the $10.37 price screens above the $7.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Palmer Square Capital BDC Inc. is a business development company specializing in direct investment. The Fund prefers to invest in corporate debt securities, collateralized loan obligation, and structured credit. The Fund prefers to invest in the United States.
Stock analysis
Palmer Square Capital BDC Inc. (PSBD) currently trades at $10.37, while our model-based Fair Value estimate is $7.79, implying the stock looks roughly 33.1% overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of $23.06 per share, and 3 of the 4 models we run sit above the $10.37 price.
Bear case: the Asset-Based group reads lowest at $10.15, and 1 of the 4 models stay below the price. Evidence for this calculation is low.
Scenario range: $4.57 (bear) to $13.36 (bull), the price of $10.37 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 58/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Palmer Square Capital BDC Inc. reported revenue of $111M in FY2025 versus $29.5M in FY2021, a compound +39.3%/yr. Reported net income was −$3.2M in FY2025.
Key figures
Market cap $321M · EPS (TTM) $−0.9800 · Net margin −2.9% · Return on assets (EBIT) 2.3% · Free cash flow $161M · Net debt $713M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 11% below its 52-week high and 11% 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 −25%, PSBD screens richer than that median.
Fair Value models
Bear $4.57Fair Value $7.79Bull $13.36
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.57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+0.8%
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.
+35.4%
Start year 2020 (pandemic)
’20
’21
’23
’24
’25
Profit margin (trend) ⓘ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.
128.7% (2020) → 42.2% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
−31.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −32.9% a year for the price.
Compare Palmer Square Capital BDC Inc. with another stock
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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 · 658 stocks
Beats the industry median on 4/9 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−25% · Bottom 25%
Profitability
Return on assets0% · Below median
Net margin (TTM)−3% · Bottom 25%
Operating margin (TTM)0% · Bottom 25%
Growth and dividend
Revenue growth0% · Below median
Dividend yield (TTM)17.5% · Top 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
P/B0.69× · Cheaper than median
P/FCF2.0× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 54
FUTURE (revenue growth)0· sector 21
PAST (return on equity)0· sector 22
HEALTH (low debt)0· sector 95
DIVIDEND (yield)100· sector 81
VALUE 0: the price sits above our fair-value range.
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). "Palmer Square Capital BDC Inc. Fair Value". https://www.fairvalue-calculator.com/stock/PSBD
Frequently asked questions
Is Palmer Square Capital BDC Inc. (PSBD) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $7.79 versus a price of $10.37, about −25% upside (overvalued).
What is the fair value of PSBD?
Our model-based fair value for Palmer Square Capital BDC Inc. is $7.79 (as of Sep 24, 2026), built from audited fundamentals. The current price: $10.37.
What is the quality score of PSBD?
Palmer Square Capital BDC Inc. has a Quality Score of 58/100. 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 Palmer Square Capital BDC Inc. (PSBD)?
Our model-based price target is the fair value of $7.79 (as of Sep 24, 2026) from 4 valuation models. Cautious scenario $4.57, optimistic scenario $13.36. It is a calculation from audited fundamentals, not an analyst target.
What is the Palmer Square Capital BDC Inc. stock forecast for 2026?
Our models put fair value at $7.79, about −25% upside versus a price of $10.37 (overvalued). Cautious scenario $4.57, optimistic scenario $13.36. The calculation is refreshed regularly with new filings.
What growth is priced into Palmer Square Capital BDC Inc. (PSBD)?
For today's price to be fair in a discounted-cash-flow model, Palmer Square Capital BDC Inc. would have to grow free cash flow by -31.3 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +35.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of PSBD use?
Our models discount Palmer Square Capital BDC Inc. at 11.2 %: a base by market capitalisation (small), 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 Palmer Square Capital BDC Inc. that is -31.3 % per year a year over ten years, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has Palmer Square Capital BDC Inc. (PSBD) delivered so far?
Over the past 5 years revenue at Palmer Square Capital BDC Inc. grew +35.4 % a year. The price currently implies -31.3 % 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 Palmer Square Capital BDC Inc. (PSBD) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Palmer Square Capital BDC Inc. (-31.3 % 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 Palmer Square Capital BDC Inc. (PSBD)?
The free-cash-flow yield on the price is 49.97 %: that much free cash flow Palmer Square Capital BDC Inc. produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Palmer Square Capital BDC Inc. (PSBD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Palmer Square Capital BDC Inc. it is $7.79 per share (as of Sep 24, 2026), against a price of $10.37. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Palmer Square Capital BDC Inc. stock overvalued or undervalued in 2026?
As of Sep 24, 2026, PSBD trades above its calculated fair value: price $10.37, fair value $7.79, a gap of about −25% (overvalued). 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 PSBD?
No. The price is what the market pays today ($10.37); the fair value is what the company's own numbers justify ($7.79). For Palmer Square Capital BDC Inc. the two are $2.58 per share apart. That gap is exactly why we show both numbers side by side.
How much is Palmer Square Capital BDC Inc. worth?
The market values Palmer Square Capital BDC Inc. at about $321M (market capitalisation, as of Sep 24, 2026). Per share that is $10.37; our models calculate a fair value of $7.79 per share.
What do the bullish and bearish scenarios say about PSBD?
Our models span a range for Palmer Square Capital BDC Inc.: cautious scenario $4.57, base $7.79, optimistic $13.36 per share (as of Sep 24, 2026, price $10.37). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is PSBD from its 52-week high?
Palmer Square Capital BDC Inc. trades at $10.37, about 11% below its 52-week high of $11.62 and 11% above the low of $9.32 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $7.79 is for.
Which stocks are comparable to Palmer Square Capital BDC Inc.?
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 Palmer Square Capital BDC Inc. stock attractive at the current price?
The data as of Sep 24, 2026: price $10.37, calculated fair value $7.79 (−25%), Quality Score 58/100, from 4 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 PSBD calculated?
We run Palmer Square Capital BDC Inc. through 4 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 $7.79, 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 13.2 % above its aggregate fair value. Palmer Square Capital BDC Inc. itself currently trades above fair value. 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 Palmer Square Capital BDC Inc. (PSBD)?
The closing price on Sep 23, 2026 was $10.37. Our model-based fair value is $7.79, about −25% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Palmer Square Capital BDC Inc. right now?
The model range is unusually wide ($4.57 to $13.36). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual. 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 Palmer Square Capital BDC Inc.
How large is the market capitalisation of Palmer Square Capital BDC Inc. (PSBD)?
The market capitalisation of Palmer Square Capital BDC Inc. is $321M. 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 are the earnings per share of Palmer Square Capital BDC Inc. (PSBD)?
Earnings per share at Palmer Square Capital BDC Inc. are $−0.9800. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Palmer Square Capital BDC Inc. (PSBD)?
The net margin of Palmer Square Capital BDC Inc. is −2.9% (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 EBIT return on assets of Palmer Square Capital BDC Inc. (PSBD)?
On an EBIT basis the return on assets of Palmer Square Capital BDC Inc. is 2.3% (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.
How much net debt does Palmer Square Capital BDC Inc. (PSBD) carry?
The net debt of Palmer Square Capital BDC Inc. is $713M (fiscal year 2025, ≈ 4.4 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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Thin data
Sep 24, 2026