Prospect Capital Corporation (PSEC) Fair Value & Analysis

Financial Services · US · Market cap $1.2B

Below-average quality, currently priced close to our fair value.

What matters now

• The model range is unusually wide ($1.34 to $5.16). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• The price sits close to our fair value, market and models broadly agree here, little valuation tension.
• 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.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $2.11 – $4.95 · fair‑value band $1.34 – $5.16 · the $2.33 price screens above the $2.29 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

Prospect Capital Corporation (PSEC) currently trades at $2.33, while our model-based Fair Value estimate is $2.29, implying the stock looks roughly 1.9% fairly valued today. The Quality Score stands at 44/100 (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: low).

Over the trailing twelve months, Prospect Capital Corporation generated revenue of $651M at a net margin of -5.8%. Revenue declined 12.1% year over year. It earns a return on equity of -0.8%. Net debt stands at $2.0B. Fundamentals as of Jul 27, 2026

Our scenario range runs from $1.34 (bear case) to $5.16 (bull case); at $2.33, the current price sits within 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 about 21% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at -2%, PSEC screens cheaper 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: Multiples ($5.07) versus Asset-Based ($4.00). Highest evidence: P/B Multiple (55).

Key figures & financial health

Quality Score breakdown

About the company

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 …

Full company description

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

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Prospect Capital Corporation reported revenue of −$277M in FY2025 versus $1.0B in FY2021. Reported net income was −$470M in FY2025.

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Earlier news

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

• Prospect Enhanced Yield Fund Announces Dividend Increase to 11.5% Annualized Rate Yahoo Finance · Jul 27, 2026
• Prospect Capital (PSEC) Announces Its Investment in ShipOffers, Here’s What You Need to Know Yahoo Finance · Jul 9, 2026
• Prospect Capital Completes Investment in ShipOffers Yahoo Finance · Jul 6, 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.

Insider activity: 66/100

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.