Prospect Capital Corporation (PSEC) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Prospect Capital Corporation $4.40, price $2.17, upside +102.8%, quality 43 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 $2.05 – $4.80 · fair‑value band $3.30 – $5.51 · the $2.17 price screens below the $4.40 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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Prospect Capital Corporation is a business development company.
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Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value betw
Stock analysis
Prospect Capital Corporation (PSEC) currently trades at $2.17, while our model-based Fair Value estimate is $4.40, implying the stock looks roughly 50.7% undervalued today.
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Valuation
How firm this estimate is: it rests on 4 models at a data quality of 95/100, which puts the evidence level at low.
Scenario range: $3.30 (bear) to $5.51 (bull), the price of $2.17 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 43/100 (below-average quality), in the Financial Services sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Prospect Capital Corporation reported revenue of −$277M in FY2025 versus $1.0B in FY2021. Reported net income was −$470M in FY2025.
Key figures
Market cap $1.1B · P/S ratio 1.76 · EPS (TTM) $−0.3700 · Net margin −5.8% · Return on equity −0.8% · Return on assets (EBIT) 3.6% · Operating margin 73.3% · Revenue (TTM) $651M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 27 out of 100 (low confidence).
What moves the price
The share trades about 22% 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 −4% fair-value upside, at 103%, PSEC screens cheaper than that median.
Fair Value models
Bear $3.30Fair Value $4.40Bull $5.51
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.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
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.
−22.8%
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.
+20.2%
Revenue growth 19 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.
+20.9%
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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.
161.7% (2019) → 56.2% (2024)
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
Compare Prospect Capital 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 · 659 stocks
Beats the industry median on 7/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score44 · Bottom 25%
Fair Value upside+100% · Top 25%
Profitability
Return on assets4% · Above median
Net margin (TTM)−6% · Bottom 25%
Operating margin (TTM)73% · Above median
Growth and dividend
Revenue growth−12% · Bottom 25%
Dividend yield (TTM)24.9% · Top 25%
Balance sheet
Debt / equity0.80× · Highest 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
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). "Prospect Capital Corporation Fair Value". https://www.fairvalue-calculator.com/stock/PSEC
Frequently asked questions
Is Prospect Capital Corporation (PSEC) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $4.40 versus a price of $2.17, about +103% upside (undervalued).
What is the fair value of PSEC?
Our model-based fair value for Prospect Capital Corporation is $4.40 (as of Sep 23, 2026), built from audited fundamentals. The current price: $2.17.
What is the quality score of PSEC?
Prospect Capital Corporation has a Quality Score of 43/100. 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 Prospect Capital Corporation (PSEC)?
Our model-based price target is the fair value of $4.40 (as of Sep 23, 2026) from 2 valuation models. Cautious scenario $3.30, optimistic scenario $5.51. It is a calculation from audited fundamentals, not an analyst target.
What is the Prospect Capital Corporation stock forecast for 2026?
Our models put fair value at $4.40, about +103% upside versus a price of $2.17 (undervalued). Cautious scenario $3.30, optimistic scenario $5.51. The calculation is refreshed regularly with new filings.
What is the revenue of Prospect Capital Corporation (PSEC)?
Prospect Capital Corporation reported trailing-twelve-month revenue of about $651M (latest available figure, as of Sep 23, 2026).
What is the intrinsic value of Prospect Capital Corporation (PSEC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Prospect Capital Corporation it is $4.40 per share (as of Sep 23, 2026), against a price of $2.17. It is the blended result of 2 valuation models (cash flow, earnings, asset, dividend).
Is Prospect Capital Corporation stock overvalued or undervalued in 2026?
As of Sep 23, 2026, PSEC trades below its calculated fair value: price $2.17, fair value $4.40, a gap of about +103% (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 PSEC?
No. The price is what the market pays today ($2.17); the fair value is what the company's own numbers justify ($4.40). For Prospect Capital Corporation the two are $2.23 per share apart. That gap is exactly why we show both numbers side by side.
How much is Prospect Capital Corporation worth?
The market values Prospect Capital Corporation at about $1.1B (market capitalisation, as of Sep 23, 2026). Per share that is $2.17; our models calculate a fair value of $4.40 per share.
What do the bullish and bearish scenarios say about PSEC?
Our models span a range for Prospect Capital Corporation: cautious scenario $3.30, base $4.40, optimistic $5.51 per share (as of Sep 23, 2026, price $2.17). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of PSEC?
The PEG ratio of Prospect Capital Corporation is 1.55 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Prospect Capital Corporation (PSEC)?
Balance-sheet figures for Prospect Capital Corporation (as of Sep 23, 2026): return on equity −0.8%, debt of 0.80 per unit of equity. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is PSEC from its 52-week high?
Prospect Capital Corporation trades at $2.17, about 22% below its 52-week high of $2.77 and 6% above the low of $2.05 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $4.40 is for.
Which stocks are comparable to Prospect Capital 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 Prospect Capital Corporation stock attractive at the current price?
The data as of Sep 23, 2026: price $2.17, calculated fair value $4.40 (+103%), Quality Score 43/100, 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 PSEC calculated?
We run Prospect Capital Corporation through 2 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 $4.40, 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 14.1 % above its aggregate fair value. Prospect Capital Corporation currently trades 103 % 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 Prospect Capital Corporation (PSEC)?
The closing price on Sep 23, 2026 was $2.17. Our model-based fair value is $4.40, about +103% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Prospect Capital Corporation right now?
The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case ($3.30). 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 Prospect Capital Corporation
How large is the market capitalisation of Prospect Capital Corporation (PSEC)?
The market capitalisation of Prospect Capital Corporation is $1.1B. 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 Prospect Capital Corporation (PSEC)?
The price-to-sales ratio of Prospect Capital Corporation is 1.76 (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 Prospect Capital Corporation (PSEC)?
Earnings per share at Prospect Capital Corporation are $−0.3700. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Prospect Capital Corporation (PSEC)?
The net margin of Prospect Capital Corporation is −5.8% (last twelve months). 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 Prospect Capital Corporation (PSEC)?
The return on equity (ROE) of Prospect Capital Corporation is −0.8% (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 Prospect Capital Corporation (PSEC)?
On an EBIT basis the return on assets of Prospect Capital 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 Prospect Capital Corporation (PSEC)?
The operating margin of Prospect Capital Corporation is 73.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Prospect Capital Corporation (PSEC)?
Revenue at Prospect Capital Corporation is growing −12.1% 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 Prospect Capital Corporation (PSEC)?
Earnings per share at Prospect Capital Corporation are growing −78.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Prospect Capital Corporation (PSEC) generate?
The free cash flow of Prospect Capital Corporation is $523M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Prospect Capital Corporation (PSEC) carry?
The net debt of Prospect Capital Corporation is $2.0B (fiscal year 2025, ≈ 3.9 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 23, 2026