The Discounted Cash Flow (DCF) valuation of Capital Southwest Corp (CSWC) is 29.95 USD. With the latest stock price at 22.80 USD, the upside of Capital Southwest Corp based on DCF is 31.3%.

Is CSWC a buy or a sell?

Based on the latest price of 22.80 USD and our DCF valuation, Capital Southwest Corp (CSWC) is a buy. Buying CSWC stocks now will result in a potential gain of 31.3%.

	Range	Selected
WACC / Discount Rate	6.4% - 9.2%	7.8%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	20.79 - 45.47	29.95
Upside	-8.8% - 99.4%	31.3%

22.80 USD

Stock Price

29.95 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

CSWC DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	204	228	258	295	331	362
% Growth	15%	11%	13%	14%	12%	10%

Cost of goods sold	(55)	(61)	(69)	(79)	(89)	(97)
% of Revenue	27%	27%	27%	27%	27%	27%

Selling, G&A expenses	(29)	(32)	(37)	(42)	(47)	(51)
% of Revenue	14%	14%	14%	14%	14%	14%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(47)	(53)	(60)	(68)	(76)	(84)
% of Revenue	23%	23%	23%	23%	23%	23%

Tax expense	(2)	(1)	(1)	(1)	(1)	(1)
Tax rate	3%	1%	1%	1%	1%	1%

Net profit	71	81	91	104	117	128
% Margin	35%	35%	35%	35%	35%	35%