Latest Ratios: P/E Ratio -1.6x · EV/EBITDA N/A · ROE -14.0%. (2005–2025 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 | $1.1B | $1.4B | $2.3B | $2.5B | $3.0B | $3.2B | $1.9B | $2.4B | $2.4B | $2.9B | $2.8B |
| Enterprise Value | $3.1B | $3.4B | $4.7B | $5.0B | $5.7B | $5.4B | $4.0B | $4.7B | $4.7B | $5.2B | $5.1B |
| P/E Ratio → | -1.61 | — | 15.36 | — | 5.22 | 3.36 | — | 16.74 | 8.08 | 11.60 | 26.97 |
| P/S Ratio | — | — | 7.20 | — | 4.87 | 3.18 | 99.11 | 12.81 | 7.27 | 9.33 | 17.65 |
| P/B Ratio | 0.32 | 0.47 | 0.62 | 0.66 | 0.74 | 0.82 | 0.62 | 0.72 | 0.71 | 0.87 | 0.81 |
| P/FCF | 2.08 | 2.68 | 8.25 | — | — | 104.40 | 4.38 | 10.68 | 6.57 | 7.75 | 3.23 |
| P/OCF | 2.08 | 2.68 | 8.25 | — | — | 104.40 | 4.38 | 10.68 | 6.57 | 7.75 | 3.23 |
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 | — | — | 14.53 | — | 9.22 | 5.32 | 209.39 | 25.00 | 13.95 | 16.77 | 32.53 |
| EV / EBITDA | — | — | 17.74 | — | 9.85 | 5.61 | — | 32.29 | 15.52 | 20.71 | 49.67 |
| EV / EBIT | — | — | 17.74 | — | 9.85 | 5.61 | — | 32.29 | 15.52 | 20.71 | 49.67 |
| EV / FCF | — | 6.58 | 16.65 | — | — | 174.33 | 9.25 | 20.84 | 12.61 | 13.92 | 5.96 |
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 | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 115.5% | 115.5% | 81.9% | 166.9% | 93.6% | 94.8% | -85.5% | 77.4% | 89.9% | 81.0% | 65.5% |
| Net Profit Margin | 115.5% | 115.5% | 81.9% | 166.9% | 93.6% | 94.8% | -85.5% | 77.4% | 89.9% | 81.0% | 65.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.0% | -14.0% | 7.1% | -2.6% | 14.4% | 27.5% | -0.5% | 4.3% | 8.9% | 7.4% | 2.9% |
| ROA | -6.4% | -6.4% | 3.3% | -1.3% | 8.3% | 16.6% | -0.3% | 2.5% | 5.0% | 4.1% | 1.6% |
| ROIC | -6.3% | -6.3% | 3.2% | -1.2% | 6.7% | 12.7% | -0.2% | 1.9% | 3.8% | 3.1% | 1.2% |
| ROCE | -6.5% | -6.5% | 3.4% | -1.3% | 8.4% | 16.8% | -0.3% | 2.5% | 5.0% | 4.1% | 1.6% |
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 | 0.70 | 0.70 | 0.66 | 0.69 | 0.66 | 0.57 | 0.70 | 0.72 | 0.68 | 0.79 | 0.78 |
| Debt / EBITDA | — | — | 9.26 | — | 4.70 | 2.32 | — | 16.49 | 7.71 | 10.45 | 25.80 |
| Net Debt / Equity | — | 0.68 | 0.63 | 0.67 | 0.66 | 0.55 | 0.68 | 0.69 | 0.65 | 0.69 | 0.68 |
| Net Debt / EBITDA | — | — | 8.95 | — | 4.65 | 2.25 | — | 15.75 | 7.43 | 9.19 | 22.73 |
| Debt / FCF | — | 3.90 | 8.40 | — | — | 69.94 | 4.87 | 10.17 | 6.04 | 6.18 | 2.73 |
| Interest Coverage | -3.61 | -3.61 | 1.79 | -0.69 | 4.96 | 7.38 | -0.11 | 0.92 | 1.93 | 1.77 | 0.70 |
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 | 0.51 | 0.51 | 0.68 | 0.77 | 0.29 | 1.78 | 1.14 | 2.46 | 1.97 | 4.80 | 4.69 |
| Quick Ratio | 0.51 | 0.51 | 0.68 | 0.77 | 0.29 | 1.78 | 1.14 | 2.46 | 1.97 | 4.80 | 4.69 |
| Cash Ratio | 0.50 | 0.50 | 0.67 | 0.76 | 0.28 | 1.26 | 0.87 | 1.91 | 1.51 | 4.63 | 4.50 |
| Asset Turnover | — | -0.06 | 0.04 | -0.01 | 0.08 | 0.16 | 0.00 | 0.03 | 0.06 | 0.05 | 0.03 |
| 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 | 34.8% | 23.7% | 15.6% | 12.1% | 8.9% | 6.0% | 12.8% | 10.3% | 10.6% | 11.4% | 12.1% |
| Payout Ratio | — | — | 137.1% | — | 46.4% | 20.3% | — | 169.6% | 85.3% | 131.9% | 325.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 6.5% | — | 19.2% | 29.8% | — | 6.0% | 12.4% | 8.6% | 3.7% |
| FCF Yield | 48.1% | 37.4% | 12.1% | — | — | 1.0% | 22.8% | 9.4% | 15.2% | 12.9% | 30.9% |
| Buyback Yield | 0.2% | 0.2% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.2% |
| Total Shareholder Yield | 35.0% | 23.9% | 16.1% | 12.1% | 8.9% | 6.0% | 12.8% | 10.3% | 10.6% | 11.4% | 13.3% |
| Shares Outstanding | — | $440M | $418M | $399M | $434M | $386M | $368M | $366M | $361M | $359M | $356M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying PSEC stock.
Prospect Capital Corporation's current P/E ratio is -1.6x. The historical average is 11.9x.
Prospect Capital Corporation's return on equity (ROE) is -14.0%. The historical average is 7.6%.
Based on historical data, Prospect Capital Corporation is trading at a P/E of -1.6x. Compare with industry peers and growth rates for a complete picture.
Prospect Capital Corporation's current dividend yield is 34.79%.
Prospect Capital Corporation has 100.0% gross margin and 115.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Key Metrics
Top Statement Risk
Dividend sustainability at risk
Metrics are mathematically derived from official filings.
Deep Discount Reflects Structural Complexity
PSEC trades at a P/B of 0.33, a significant discount to peers like ARCC (0.97) and MAIN (1.75), suggesting the market prices in substantial risk regarding its Level 3 assets and complex capital structure.
The persistent discount to tangible book value indicates the market does not view PSEC's reported NAV as a reliable indicator of liquidation value, likely due to the opacity of its CLO equity and real estate holdings. This valuation implies a low or negative expected return on tangible equity, which is consistent with the recent trend of negative ROE. Investors should monitor whether this discount narrows as the portfolio liquidates or if it represents a permanent structural feature of the company's valuation.
ROE Volatility Driven by Non-Cash Losses
Return on equity has been highly volatile, swinging from 3.9% in 2024Q3 to -6.3% in 2025Q4, indicating that profitability is dominated by mark-to-market swings rather than stable net interest income generation.
The DuPont decomposition reveals that the primary driver of ROE volatility is not asset utilization or leverage, but the massive swings in non-interest income, which are largely non-cash unrealized gains and losses. The NIM has remained relatively stable between 1.8% and 2.3%, but this core income stream is insufficient to offset the portfolio valuation losses. This pattern suggests that reported earnings are a poor proxy for the company's cash-generating ability, and the dividend's sustainability depends on net investment income, not GAAP net income.
NIM Compression Amidst Operational Inefficiency
The net interest margin has compressed to 2.3% in 2026Q4 from 2.0% a year prior, while the efficiency ratio has been erratic, indicating that rising funding costs are eroding the core spread business.
The NIM trend suggests that the yield on PSEC's floating-rate assets is not keeping pace with the increasing cost of its own debt and preferred stock obligations. The highly volatile efficiency ratio, which even turned negative in 2026Q3, is not a meaningful measure of operating leverage for a BDC, as it is distorted by the same non-cash items that affect the income statement. The core issue appears to be a structural squeeze on net interest income, which is the primary source of distributable cash flow.
Emerging Credit Stress in Middle-Market Portfolio
After eight quarters of zero provision expense, PSEC recorded a $3.1 million provision in 2026Q3, a pattern that may indicate the beginning of a credit cycle turn for its middle-market borrowers.
The resumption of provision expense, while modest in absolute terms, is a significant inflection point that warrants close monitoring. It suggests that management is beginning to recognize potential deterioration in the credit quality of its loan portfolio. This development, combined with the high percentage of PIK income and the focus on non-accrual rates as key drivers, indicates that asset quality risk is becoming more salient and could further pressure net investment income if defaults rise.
Valuation Gap Highlights Risk Perception
PSEC's P/B of 0.33 is a stark outlier compared to the peer group average of approximately 0.93, indicating that the market assigns a much higher risk premium to its balance sheet than to its direct competitors.
This valuation gap is not explained by differences in leverage, as PSEC's equity-to-assets ratio of 0.70 is actually higher than many peers. Instead, the discount appears to reflect concerns about the quality and liquidity of its assets, particularly the Level 3 holdings in CLOs and real estate. The market is effectively pricing PSEC as a distressed or complex balance sheet, whereas peers like MAIN and ARCC are valued as going-concern lending franchises.
P/E Ratio is Misleading for a BDC
The P/E ratio of -1.67 is meaningless for PSEC because it is distorted by large, non-cash unrealized losses, and investors should instead focus on the price-to-net investment income multiple and dividend coverage.
For a BDC like PSEC, the P/E ratio is the most commonly misapplied metric because GAAP net income includes volatile mark-to-market adjustments on Level 3 assets that do not affect cash flow or the ability to pay dividends. A negative P/E does not necessarily signal a loss of economic value, but rather reflects accounting volatility. The appropriate alternative is to analyze the price relative to Net Investment Income (NII) and to assess the dividend payout ratio against NII, which provides a clearer picture of the income stream available to shareholders.