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Prospect Capital Corporation (PSEC) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of Prospect Capital Corporation stock $2.82, price $1.41, upside +100.0%, quality 56 out of 100. Rating: strongly undervalued. Calculated from audited financials with 11 of our 26 valuation models and 37 quality factors, updated daily.

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Financial Services US

PC Prospect Capital Corporation logo Some data Nov 8, 2026

Prospect Capital Corporation

PSEC · US
Undervalued, but in a downtrend

The stock costs 50% less than our calculation considers fair.

Fair value $2.82 · Strongly undervalued (50%)
Highly profitable · 24.0% net margin (TTM)
Generates free cash flow
Upbeat coverage
Even on cautious assumptions the value is 70% above the price ($2.39).
Quality 56/100
Moderate debt
Moderate moat 53/100 · thin data
Insiders bought $9.4M (6M)
Some data
Weak Growth (revenue 5y −8.9 %/yr in USD)
Trails peers (5/14)
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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$4.54 $1.39 Fair Value $2.82 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.

How to read this chart

60‑month range $1.39 – $4.54 · fair‑value band $2.39 – $5.23 · the $1.41 price screens below the $2.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.

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Company profile

Prospect Capital Corporation is a business development company.

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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 $1.41, while our model-based Fair Value estimate is $2.82, implying the stock looks roughly 50% undervalued today.

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Valuation

Bull case: the Growth DCF group reads highest at a median of $19.44 per share, and 11 of the 11 models we run sit above the $1.41 price.

Bear case: the Asset-Based group reads lowest at $5.61, and 0 of the 11 models stay below the price. Data coverage for this calculation is medium.

Scenario range: $2.39 (bear) to $5.23 (bull), the price of $1.41 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 56/100 (solid quality), in the Financial Services sector.

Weak Growth: Revenue growth is weak, negative or inconsistent.

Prospect Capital Corporation reported revenue of $639M in FY2026 versus $740M in FY2022, a compound −3.6%/yr. Reported net income was $154M in FY2026, compounding −28.3%/yr from FY2022.

Key figures

Market cap $769M Small · P/E ratio 23.5 · P/S ratio 5.65 · EPS (TTM) $0.0600 · Net margin 24.0% · Return on equity 3.4% · Return on assets (EBIT) 1.6% (5-year average) · Operating margin 70.3%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).

What moves the price

The share trades about 46% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at 100%, PSEC screens cheaper than that median.

Fair Value models

Bear $2.39 Fair Value $2.82 Bull $5.23
Price $1.41 · Upside +100.0%
Capped: our models arrive at a very high value here. We deliberately show a more cautious Fair Value.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = 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.
Best data coverage
Residual Income $5.85 $5.79 $5.92 72
Growth DCF $9.23 $19.44 $35.53 69
Gordon GGM $4.97 $9.08 $12.65 64
All 11 models by family
DCF Models
5Y P/E Exit $2.16 $6.89 $12.77 62
10Y P/E Exit $4.86 $11.10 $20.10 56
Earnings-Based
Graham-Dodd $1.96 $13.65 $19.16 59
Lynch FV $7.05 $10.07 $13.10 57
Dividend Discount
Gordon GGM $4.97 $9.08 $12.65 64
DDM Multi-Stage $4.97 $8.24 $9.69 63
Multiples
P/E Multiple $2.81 $3.74 $4.68 63
P/B Multiple $8.80 $11.73 $14.66 55
Asset-Based
NCAV (Graham) $4.19 $5.61 $8.38 54
Growth DCF
Growth DCF $9.23 $19.44 $35.53 69
Economic Profit
Residual Income $5.85 $5.79 $5.92 72

Open the full fair value analysis →

Quality Score breakdown

Overall quality 56/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 33
How much profit the company makes from its sales and capital
Quality Growth 60
Are margins and returns getting better?
Cashflow 100
Do the profits arrive as real cash?
Financial strength 42
Debt, balance sheet and risk of trouble
Investment 89
Does it invest with discipline instead of growing at any price?
Low Volatility 61
How calm the share price moves, does not count
Price momentum 9
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 1
Distance to the 52-week high, does not count
New shares 8
Buys back shares or issues new ones?

Open the full quality analysis →

Insider trades

In the last 6 months, one officer or director bought shares worth $9.4M, on Sep 4, 2026.

  • BuyJohn F BarryCHIEF EXECUTIVE OFFICER, Director, 10% owner6× since May 21, 2026: 4,149,753 shares, avg. $2.26$9.4MSep 4, 2026
  • BuyM Grier EliasekChief Operating Officer, Director942,800 shares at $2.92$2.8MFeb 11, 2026

Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.

Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗

Revenue & earnings trend

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 weak, negative or inconsistent.
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.
−8.9%
Start year 2021 (pandemic). Over 10 years: +7.7% a year
Revenue growth 21 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.
+20.6%
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.
−25.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−25.4%
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.−30.1% vs −7.6%, slowing
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Revenue per share shrinking 3.3%/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.

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Earlier news

News mood ⓘNews mood, the average tone of recent news (85 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. Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.

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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 · 588 stocks

Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 56 · Below median
Fair Value upside +100.0% · Top 25%
Profitability
Return on equity (12 months) 3.4% · Below median
Return on assets 2.4% · Below median
Net margin (12 months) 24.0% · Below median
Operating margin (12 months) 70.3% · Above median
Growth and dividend
Revenue growth (quarter YoY) −6.7% · Below median
Dividend yield (12 months) 33.6% · Top 25%
Balance sheet
Debt / equity 0.53× · Highest 25%

Valuation Multiplesvs Asset Management median · lower = cheaper

P/E (12 months) 23.5× · Priciest 25%
P/B 0.17× · Cheapest 25%
P/S (12 months) 1.20× · Cheapest 25%
Price / free cash flow (fiscal year) 1.5× · Cheapest 25%
EV/EBITDA 11.0× · Pricier than median
PEG 1.55× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 60
FUTURE (revenue growth)0 · sector 39
PAST (return on equity)13 · sector 29
HEALTH (low debt)74 · sector 96
DIVIDEND (yield)0 · sector 80

Context: sector, industry, market

Values & ESG

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

None of the checked exposures detected

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Exor N.V EXO €73.35 €139.37 +90% vs PSEC
Raymond James Financial, Inc RJF $162.81 $281.42 +73% vs PSEC
Apollo Global Management, Inc APO $116.75 $197.52 +69% vs PSEC
Ameriprise Financial, Inc AMP $501.49 $609.56 +22% vs PSEC
State Street Corporation STT $165.56 $139.37 −16% vs PSEC
Ares Management Corporation ARES $133.98 $99.35 −26% vs PSEC
Northern Trust Corporation NTRS $172.76 $123.42 −29% vs PSEC
Brookfield Asset Management Ltd BAM $52.95 $31.26 −41% vs PSEC
Blackstone Inc BX $119.50 $52.29 −56% vs PSEC
KKR & Co KKR $96.48 $27.32 −72% vs PSEC

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Prospect Capital Corporation: fair value per Fair Value Calculator

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 Nov 8, 2026, our model estimates a fair value of $2.82 versus a price of $1.41, about +100% upside (undervalued).
What is the fair value of PSEC?
Our model-based fair value for Prospect Capital Corporation is $2.82 (as of Nov 8, 2026), built from audited fundamentals. The current price: $1.41.
What is the quality score of PSEC?
Prospect Capital Corporation has a Quality Score of 56/100. 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 $2.82 (as of Nov 8, 2026) from 11 valuation models. Cautious scenario $2.39, optimistic scenario $5.23. 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 $2.82, about +100% upside versus a price of $1.41 (undervalued). Cautious scenario $2.39, optimistic scenario $5.23. 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 $639M (latest available figure, as of Nov 8, 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 $2.82 per share (as of Nov 8, 2026), against a price of $1.41. It is the blended result of 11 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is Prospect Capital Corporation stock overvalued or undervalued in 2026?
As of Nov 8, 2026, PSEC trades below its calculated fair value: price $1.41, fair value $2.82, a gap of about +100% (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 ($1.41); the fair value is what the company's own numbers justify ($2.82). For Prospect Capital Corporation the two are $1.41 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 $769M (market capitalisation, as of Nov 8, 2026). Per share that is $1.41; our models calculate a fair value of $2.82 per share.
What do the bullish and bearish scenarios say about PSEC?
Our models span a range for Prospect Capital Corporation: cautious scenario $2.39, base $2.82, optimistic $5.23 per share (as of Nov 8, 2026, price $1.41). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PSEC?
Prospect Capital Corporation trades at a price-to-earnings ratio of 23.5 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $2.82 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 2.1 (reported for FY2026: 4.4). Median P/E at fiscal year-end, 7 fiscal years (2017 to 2026), reported earnings, FY2021, FY2022, FY2026 ex one-offs: 8.8. Other multiples: PEG 1.5, P/B 0.2, P/S 1.2, EV/EBITDA 11.0.
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 Nov 8, 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 Nov 8, 2026): return on equity 3.4%, debt of 0.53 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is PSEC from its 52-week high?
Prospect Capital Corporation trades at $1.41, about 46% below its 52-week high of $2.62 and 2% above the low of $1.39 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $2.82 is for.
Which stocks are comparable to Prospect Capital Corporation?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, 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 Nov 8, 2026: price $1.41, calculated fair value $2.82 (+100%), Quality Score 56/100, from 11 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 11 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of $2.82 builds on their evidence-weighted average, 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. Prospect Capital Corporation currently trades 50% 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 Nov 6, 2026 was $1.41. Our model-based fair value is $2.82, about +100% 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 price is below even our cautious bear case ($2.39). The market is more pessimistic than our downside scenario. Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($2.39 to $5.23) 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.

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 $769M. 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 5.65 (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 Prospect Capital Corporation (PSEC)?
Earnings per share at Prospect Capital Corporation are $0.0600 (price ÷ EPS = P/E 23.5). 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 24.0% (fiscal year 2026). 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 3.4% (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 1.6% (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 70.3% (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 −6.7% versus a year earlier (3y avg +94.2%). 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 $516M (fiscal year 2026). 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 $1.8B (fiscal year 2026, ≈ 3.5 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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