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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Prospect Capital Corporation
PSEC · USThe stock costs 50% less than our calculation considers fair.
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Price vs Fair Value
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
All 11 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
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
Watch PSEC, get fair value alerts →
Earlier news
- Prospect Floating Rate and Alternative Income Fund Announces a 14.46% Annualized Total Cash Common Shareholder Distribution Rate on Net Asse
- Prospect Capital Corp's Dividend Analysis
- Prospect Capital Management’s Grier Eliasek Featured in PEI Private Credit Q&A on Lower Middle-Market Opportunities
- Prospect Capital Management Featured in AdvisorHub Article on Firm’s Four-Decade Track Record
Compare Prospect Capital Corporation with another stock
Price, fair value, quality and upside side by side.
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
Valuation Multiplesvs Asset Management median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Financials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Fair value gap by industry
- Return on assets by industry
- PEG screener for stocks with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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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Key figures of Prospect Capital Corporation
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