MODEL VERDICT
Source Capital, Inc. (SOR)
Relative Valuation•Peer multiples, competitive benchmarking & quality-adjusted fair value
Source Capital, Inc. is currently trading at a 375.82% discount to its peer-implied fair value.
20 industry peers matched by industry sector due to narrow curated coverage
| Ticker | Company | Market Cap | P/E | EV/EBITDA |
|---|---|---|---|---|
| BLK | BlackRock, Inc. | $173.68B | 29.65x | 22.99x |
| BK | The Bank of New York Mellon Corporation | $100.01B | 19.15x | 0.27x |
| BN | Brookfield Corporation | $99.42B | 88.88x | 12.31x |
| BX | Blackstone Inc. | $96.99B | 31.9x | 14.92x |
| KKR | KKR & Co. Inc. | $86.49B | 41.46x | 19.82x |
| BAM | Brookfield Asset Management Ltd. | $77.71B | 30.61x | 27.6x |
| STT | State Street Corporation | $48.64B | 17.91x | -12.35x |
| AMP | Ameriprise Financial, Inc. | $45.01B | 12.86x | 8.09x |
| ARES | Ares Management Corporation | $42.48B | 65.99x | 27.9x |
| NTRS | Northern Trust Corporation | $31.9B | 19.69x | -3.98x |
| TROW | T. Rowe Price Group, Inc. | $23.43B | 11.64x | 7.98x |
| BEN | Franklin Resources, Inc. | $17.17B | 36.32x | 23.68x |
3 valuation metrics · peer-median based
| Multiple | Current | Peer Median | vs Peers | Implied Price |
|---|---|---|---|---|
| Forward P/EPrice paid for next year's expected earnings. | 2.72x | 14.24x | Discount -80.91% | $237.68 |
| P/EPrice paid for current earnings. | 9.49x | 30.61x | Discount -68.99% | $289.29 |
| P/BMarket value versus book equity. | 1.04x | 1.87x | Discount -44.41% | $81.61 |
How the model derives the final fair value from peer baselines and quality metrics
Opportunity: The stock is trading at a 78.98% discount to its quality-adjusted fair value of $215.88. To reach its estimated fair value, the stock would need to appreciate by 375.81% from its current price of $45.37.
Quality metrics are broadly comparable to peers.
Quality adjustments are capped at ±15% (up to ±20% for financial services) to prevent runaway premiums. Based on trailing twelve months and multi-year CAGR data where available.
How current multiples rank vs 8 years of the stock’s own history
| Multiple | Current | Historical Median | Percentile | Status |
|---|---|---|---|---|
| P/E6 years of data | 9.49x | 7.96x | 83th | Above historical norm |
| P/B8 years of data | 1.04x | 0.91x | 100th | Above historical norm |
Source Capital, Inc. currently trades near the highest valuation levels observed during the last 8 years.
Model-identified caveats to consider
SOR looks cheap versus peers using L2 rescue peers after thin AI peer data, with relative upside of 375.8%.
Answers to common questions about SOR's relative valuation and our methodology.
Source Capital, Inc.'s fair value of $215.88 is the price at which the stock would trade if valued at the same multiples as its 20-company peer group, adjusted for differences in business quality. At $45.37, the stock trades at a +375.82% discount to fair value. This is a reference point, not a price target.
Peers were grouped by industry classification and market capitalization. The 20 companies shown are the closest comparable names with clean, usable financial data.
Source Capital, Inc. has strengths in roe, net margin, and challenges in 3y eps growth, and a quality score that justifies a 3.33% premium relative to its peer group. The Quality Adjustment section breaks down each driver.
No. This page provides an automated quantitative comparison of Source Capital, Inc. against its peers. It is not investment advice, a recommendation, or a solicitation. Valuation is only one factor in an investment decision — it does not account for growth catalysts, management quality, regulatory risk, or your personal financial situation.
A 375.82% discount is substantial. Large discounts may signal that the market is overlooking value, but they can also reflect genuine business challenges or structural headwinds. Review the Risk Factors and Historical Context sections to assess whether the gap is justified.
Valuation data is refreshed weekly based on the latest financial filings, market prices, and analyst estimates. Source Capital, Inc.'s fair value, peer multiples, and quality scores will shift over time as new earnings are reported and stock prices change.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. Fair value estimates are model outputs under stated assumptions and should not be relied upon as the sole basis for any investment decision.