Latest Ratios: P/E Ratio 9.2x · EV/EBITDA 14.8x · ROE 16.2%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.2B | $3.7B | $3.2B | $2.4B | $1.7B | $1.9B | $1.6B | $1.4B | $1.0B | $1.1B | $1.0B |
| Enterprise Value | $5.4B | $5.9B | $4.9B | $3.9B | $3.2B | $3.0B | $2.7B | $2.7B | $1.9B | $1.8B | $1.7B |
| P/E Ratio → | 9.17 | 10.17 | 12.48 | 7.22 | 16.73 | 11.13 | 7.17 | 8.20 | 13.31 | 13.81 | 15.51 |
| P/S Ratio | 6.98 | 8.06 | 9.18 | 5.66 | 9.07 | 7.54 | 5.44 | 5.85 | 7.39 | 8.00 | 9.34 |
| P/B Ratio | 1.49 | 1.65 | 1.63 | 1.34 | 1.19 | 1.47 | 1.25 | 1.26 | 1.05 | 1.29 | 1.32 |
| P/FCF | — | — | — | 35.82 | — | 14.97 | 7.80 | — | — | — | — |
| P/OCF | — | — | — | 35.36 | — | 14.96 | 7.79 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 13.00 | 13.91 | 9.09 | 17.54 | 11.89 | 9.12 | 10.91 | 14.22 | 13.13 | 15.11 |
| EV / EBITDA | 14.83 | 16.17 | 18.68 | 11.48 | 31.66 | 17.39 | 11.93 | 15.29 | 25.24 | 22.47 | 24.42 |
| EV / EBIT | 14.85 | 16.19 | 18.71 | 11.48 | 31.72 | 17.42 | 11.95 | 15.31 | 25.31 | 22.53 | 24.49 |
| EV / FCF | — | — | — | 57.51 | — | 23.61 | 13.08 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 87.2% | 87.2% | 82.1% | 86.3% | 77.1% | 82.4% | 83.3% | 81.7% | 77.5% | 78.2% | 77.7% |
| Operating Margin | 66.7% | 66.7% | 61.0% | 68.3% | 42.6% | 56.3% | 63.6% | 58.2% | 43.6% | 45.5% | 47.9% |
| Net Profit Margin | 62.1% | 62.1% | 61.0% | 68.3% | 42.6% | 56.3% | 63.6% | 58.2% | 43.6% | 45.5% | 47.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.2% | 16.2% | 13.9% | 21.1% | 7.5% | 13.4% | 18.7% | 16.6% | 8.5% | 9.7% | 9.1% |
| ROA | 8.1% | 8.1% | 7.3% | 10.5% | 3.6% | 6.7% | 8.9% | 7.9% | 4.2% | 5.1% | 4.9% |
| ROIC | 6.6% | 6.6% | 5.5% | 8.0% | 2.8% | 5.1% | 6.8% | 6.0% | 3.2% | 3.9% | 3.7% |
| ROCE | 8.8% | 8.8% | 7.5% | 10.8% | 4.0% | 7.3% | 9.1% | 8.1% | 4.4% | 5.2% | 5.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.04 | 1.04 | 0.90 | 0.87 | 1.13 | 0.95 | 1.00 | 1.15 | 1.01 | 0.94 | 0.83 |
| Debt / EBITDA | 6.30 | 6.30 | 6.78 | 4.62 | 15.45 | 7.13 | 5.69 | 7.47 | 12.57 | 9.94 | 9.50 |
| Net Debt / Equity | — | 1.01 | 0.84 | 0.81 | 1.12 | 0.85 | 0.85 | 1.09 | 0.97 | 0.83 | 0.81 |
| Net Debt / EBITDA | 6.14 | 6.14 | 6.35 | 4.33 | 15.29 | 6.37 | 4.82 | 7.10 | 12.12 | 8.78 | 9.31 |
| Debt / FCF | — | — | — | 21.68 | — | 8.64 | 5.29 | — | — | — | — |
| Interest Coverage | 3.96 | 3.96 | 3.41 | 4.99 | 1.86 | 3.20 | 3.81 | 3.18 | 1.94 | 2.09 | 2.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.37 | 1.00 | 1.23 | 0.36 | 7.06 | 4.46 | 0.65 | 3.85 | 0.93 |
| Quick Ratio | 1.44 | 1.44 | 1.37 | 1.00 | 1.23 | 0.36 | 7.06 | 4.46 | 0.65 | 3.85 | 0.93 |
| Cash Ratio | 0.87 | 0.87 | 2.06 | 0.62 | 0.33 | 0.31 | 5.46 | 2.12 | 0.43 | 3.39 | 0.49 |
| Asset Turnover | — | 0.12 | 0.11 | 0.14 | 0.08 | 0.12 | 0.14 | 0.12 | 0.09 | 0.10 | 0.10 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.4% | 7.5% | 9.3% | 11.3% | 10.1% | 7.6% | 9.4% | 9.3% | 11.2% | 9.3% | 8.7% |
| Payout Ratio | 81.3% | 81.3% | 115.4% | 81.1% | 165.9% | 83.5% | 67.1% | 76.1% | 147.4% | 127.7% | 131.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.9% | 9.8% | 8.0% | 13.9% | 6.0% | 9.0% | 13.9% | 12.2% | 7.5% | 7.2% | 6.4% |
| FCF Yield | — | — | — | 2.8% | — | 6.7% | 12.8% | — | — | — | — |
| Buyback Yield | 0.2% | 0.2% | 0.1% | 0.5% | 0.3% | 0.1% | 0.1% | 0.4% | 0.5% | 0.2% | 0.7% |
| Total Shareholder Yield | 8.6% | 7.7% | 9.5% | 11.9% | 10.4% | 7.7% | 9.5% | 9.6% | 11.7% | 9.6% | 9.4% |
| Shares Outstanding | — | $195M | $162M | $145M | $127M | $116M | $112M | $102M | $91M | $83M | $74M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying HTGC stock.
Hercules Capital, Inc.'s current P/E ratio is 9.2x. The historical average is 17.8x. This places it at the 24th percentile of its historical range.
Hercules Capital, Inc.'s current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.8x.
Hercules Capital, Inc.'s return on equity (ROE) is 16.2%. The historical average is 9.7%.
Based on historical data, Hercules Capital, Inc. is trading at a P/E of 9.2x. This is at the 24th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hercules Capital, Inc.'s current dividend yield is 8.35% with a payout ratio of 81.3%.
Hercules Capital, Inc. has 87.2% gross margin and 66.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Hercules Capital, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Venture debt credit cycle
Metrics are mathematically derived from official filings.
Premium NAV Multiple Reflects Franchise Value
HTGC trades at 1.51x book versus peers near or below 1.0x, implying the market capitalizes its internal management and venture ecosystem access. According to the latest valuation data, this premium persists despite a 9.26x P/E, suggesting earnings power is not fully discounted.
The P/B of 1.51x stands well above the peer group (ARCC 0.97x, GBDC 0.88x, OBDC 0.77x), indicating investors assign a scarcity value to HTGC's proprietary deal flow and internal management structure. This premium implies the market expects sustained above-average ROTCE, likely driven by warrant upside and lower expense drag. However, the 8.3% dividend yield, while attractive, is below peers like GSBD (20.4%) and TPVG (19.0%), reflecting a lower risk perception but also a higher valuation bar. The forward P/E of 8.81x suggests modest earnings growth expectations, which may be conservative given the recent origination momentum.
ROE Volatility Masks Core Earnings Power
ROE swung from 1.9% in 2026Q1 to 5.8% in 2026Q2, driven by provision reversals and mark-to-market gains. As reported in quarterly data, the 62.1% net margin and 87.2% gross margin indicate high operational efficiency, but earnings quality is clouded by non-recurring items.
The DuPont decomposition reveals that ROE is primarily driven by asset utilization (ROA of 2.7% in 2026Q2) and leverage (equity/assets of 0.49), with NIM contributing a stable but modest 2.3%. The efficiency ratio's extreme volatility (from -3.0% to 26.4%) reflects the impact of non-interest income swings, particularly from warrant valuations. Excluding these items, core lending profitability appears solid, but the reliance on provision releases (a $25M benefit in 2026Q2) and fee income spikes suggests that reported ROE may overstate sustainable returns. Investors should monitor the sustainability of these non-core gains, as they are inherently unpredictable.
Stable NIM Amid Rate Cycle, Efficiency Volatile
NIM has held steady in a 2.2%-2.5% range over the past year, per reported figures, indicating balanced asset yields and funding costs. However, the efficiency ratio's wild swings—from -3.0% to 26.4%—highlight the distorting effect of non-interest income on operating leverage.
The stability of NIM suggests that HTGC's floating-rate loan portfolio and wholesale funding costs are well-matched, insulating the spread from rate movements. However, the efficiency ratio's volatility is not a true reflection of cost control; rather, it is driven by mark-to-market swings in the warrant portfolio. Excluding these, the core efficiency ratio likely remains in the low-20s, consistent with the internal management model's scalability. The 87.2% gross margin underscores the wide spread between venture loan yields and funding costs, but this could compress if private credit competition intensifies, as flagged in recent context.
Leverage Headroom Supports Aggressive Growth
With a debt-to-equity ratio of 1.04 versus the 2.0 regulatory limit, HTGC retains substantial capacity for portfolio expansion, as per balance sheet data. The equity/assets ratio of 0.49 indicates a leveraged balance sheet, but one that is still within BDC constraints.
The current leverage level suggests that HTGC could nearly double its debt without breaching regulatory limits, providing ample dry powder for continued originations. However, the recent increase in leverage (equity/assets down from 0.51 a year ago) indicates a deliberate strategy to fund growth, which may heighten sensitivity to credit losses. The stable tangible book value per share (around $11.40) suggests that capital is being deployed without diluting book value, a positive sign for existing shareholders. Investors should monitor whether this leverage is used to fund high-quality venture debt or if it signals a shift down the credit curve.
Provision Reversal Masks Underlying Credit Risk
HTGC recorded a $25.0M provision benefit in 2026Q2, reversing prior charges and boosting earnings, as per quarterly filings. This suggests improving credit conditions, but the venture debt portfolio's reliance on future funding rounds for repayment warrants caution.
The provision reversal may indicate that the portfolio's credit quality is stabilizing, but it also raises questions about the adequacy of reserves given the inherent risk of venture lending. With many borrowers lacking positive cash flow, credit risk is closely tied to VC sentiment and the availability of follow-on funding. The recent increase in competition from private credit giants could pressure underwriting standards, potentially leading to higher charge-offs in the future. While current metrics appear healthy, the lack of granular NPL data makes it difficult to assess the true quality of the portfolio. Investors should watch for any uptick in non-accruals or a reversal of the provision benefit in coming quarters.
P/E Misleads Due to Provision and Fee Volatility
The P/E ratio of 9.26x is often used to gauge value, but for HTGC it is distorted by volatile non-interest income and provision reversals. As reported in financial statements, these items can cause earnings to swing dramatically, making P/E an unreliable metric for this BDC.
For banks and BDCs, P/B and P/TBV are more appropriate valuation multiples because they reflect the net asset value and are less susceptible to earnings volatility. HTGC's P/B of 1.51x indicates a premium valuation, but this is justified by its internal management structure and venture ecosystem access. The P/E ratio, on the other hand, can be misleading: in 2026Q1, EPS was depressed by mark-to-market losses, while in 2026Q2 it was inflated by a provision benefit. Investors should focus on core net investment income (NII) and adjust for non-recurring items to assess sustainable earnings power. Additionally, the use of P/E for BDCs often ignores the impact of unrealized gains/losses on the warrant portfolio, which can significantly affect book value but not earnings.