PSEC
Prospect Capital Corp
Price:  
3.32 
USD
Volume:  
1,626,031
United States | Capital Markets

PSEC Fair Value

-507.6 %
Upside

What is the fair value of PSEC?

As of 2025-07-05, the Fair Value of Prospect Capital Corp (PSEC) is -13.53 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 3.32 USD, the upside of Prospect Capital Corp is -507.6%.

Is PSEC a good investment?

With the market price of 3.32 USD and our fair value calculation, Prospect Capital Corp (PSEC) is not a good investment. Investing in PSEC stocks now will result in a potential loss of 507.6%.

Note: valuation result may not be accurate due to the company's negative EPS.

3.32 USD
Stock Price
-13.53 USD
Fair Price
FAIR VALUE CALCULATION

PSEC Fair Value

Peter Lynch's formula is:

PSEC Fair Value
= Earnings Growth Rate x TTM EPS
PSEC Fair Value
= 25 x -0.54
PSEC Fair Value
= -13.53

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
06-202006-202106-202206-202306-20245Y Avg
Net income-16.2963.8582.6-101.6262.83338
YoY growth-111.2%6049.4%-39.6%-117.4%358.7%1228%

PSEC Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
FS KKR Capital Corp5,9911.947.49122%
AllianceBernstein Holding LP4,5543.862.8753%
Cohen & Steers Inc3,9773.165.59-15.9%
Golub Capital BDC Inc3,9351.127.6687.3%
Artisan Partners Asset Management Inc3,750463.5836.8%
FS KKR Capital Corp II3,6630.10.67-96.9%
AssetMark Financial Holdings Inc2,6371.99.58-72.8%
Canoe EIT Income Fund2,8383.587.73461.7%
Virtus Investment Partners Inc1,37617.4365.2983.5%
Oaktree Specialty Lending Corp1,2390.12.56-81.8%

PSEC Fair Value - Key Data

Market Cap (mil)1,499
P/E-
Forward P/E9.2x
EPS-0.54
Avg earnings growth rate1228%
TTM earnings-244

PSEC Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.