Palmer Square Capital BDC Inc. (PSBD)
Valuation Overview•Is Palmer Square Capital BDC Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 29/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
PSBD struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-35.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $15.5M | +0.8% | — | — | — | |
| EBITDA | -$26.7M | — | — | — | — | |
| Net Income | -$37.2M | -106.6% | +65.1% | — | — | |
| EPS (Diluted) | $-1.19 | -106.8% | — | — | — | |
| Free Cash Flow | $27.1M | +50.5% | — | +58.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 33.5% | 67.9% | 84.4% | 83.6% |
| Operating Margin | -35.1% | 51.8% | 74.2% | 83.3% |
| Net Margin | -52.5% | 36.8% | 65.2% | 72.5% |
| FCF Margin | 91.1% | 92.8% | -225.0% | -176.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.40 | $0.35 | -12.5% | ||
| Q1'26 | $0.42 | $0.41 | -2.4% | ||
| Q4'25 | $0.41 | $0.43 | +4.9% | ||
| Q3'25 | $0.41 | $0.43 | +4.9% | ||
| Q2'25 | $0.44 | $0.40 | -9.1% | ||
| Q1'25 | $0.47 | $0.46 | -2.1% | ||
| Q4'24 | $0.48 | $0.48 | +0.0% | ||
| Q3'24 | $0.51 | $0.48 | -5.9% |
Total return is -14.3% (1Y), lagging the benchmark by -39.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -7.3% | -16.6% | — |
| 1Y | -14.3% | -39.3% | +11.3% |
| 3YCAGR | -2.8% | -22.4% | +25.4% |
| 5YCAGR | -1.7% | -14.2% | +25.4% |
| 10YCAGR | -0.8% | -14.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Palmer Square Capital BDC Inc. (PSBD) valuation, health, and returns.
Based on peer relative multiples, Palmer Square Capital BDC Inc. appears Limited: Slightly expensive versus peers compared to industry peers.
Palmer Square Capital BDC Inc. has multiple valuation anchors: Peer Relative Fair Value: $8.78 | Wall Street Analyst Target: $11.00 (implying +2.0% upside). A convergence of these signals offers higher conviction.
Palmer Square Capital BDC Inc. displays weak financial health with a composite quality score of 29/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 2.8%.
Palmer Square Capital BDC Inc. pays a 16.0% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 5.4% buyback yield.
Palmer Square Capital BDC Inc.'s current growth trajectory is Stable. The company achieved +0.8% 1Y revenue growth and -106.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 4 analysts, beating EPS expectations in 40% of recent quarters with a -2-quarter streak. The consensus price target represents a +2.0% change from current levels.
Investment risks for Palmer Square Capital BDC Inc. include: -34.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.54x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.