Prospect Capital EBITDA vs. Current Valuation
| PSEC Stock | USD 4.78 0.03 0.63% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 444.2 M | Current Value 293.3 M | Quarterly Volatility 293.6 M |
For Prospect Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prospect Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prospect Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prospect Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prospect Capital over time as well as its relative position and ranking within its peers.
Prospect |
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prospect Capital. If investors know Prospect will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prospect Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.78) | Dividend Share 0.72 | Earnings Share (0.25) | Revenue Per Share 1.961 | Quarterly Revenue Growth (0.17) |
The market value of Prospect Capital is measured differently than its book value, which is the value of Prospect that is recorded on the company's balance sheet. Investors also form their own opinion of Prospect Capital's value that differs from its market value or its book value, called intrinsic value, which is Prospect Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prospect Capital's market value can be influenced by many factors that don't directly affect Prospect Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Prospect Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prospect Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prospect Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Prospect Capital Current Valuation vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Prospect Capital's current stock value. Our valuation model uses many indicators to compare Prospect Capital value to that of its competitors to determine the firm's financial worth. Prospect Capital is regarded second in ebitda category among its peers. It is regarded third in current valuation category among its peers reporting about 13.26 of Current Valuation per EBITDA. At present, Prospect Capital's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Prospect Capital's earnings, one of the primary drivers of an investment's value.Prospect Current Valuation vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Prospect Capital |
| = | 444.22 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Prospect Capital |
| = | 5.89 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Prospect Current Valuation vs Competition
Prospect Capital is regarded third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 44.92 Billion. Prospect Capital retains roughly 5.89 Billion in current valuation claiming about 13% of equities under Financials industry.
Prospect Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Prospect Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prospect Capital will eventually generate negative long term returns. The profitability progress is the general direction of Prospect Capital's change in net profit over the period of time. It can combine multiple indicators of Prospect Capital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 5.3 B | 5.6 B | |
| Operating Income | 580.1 M | 609.1 M | |
| Income Before Tax | 262.8 M | 209.4 M | |
| Total Other Income Expense Net | -317.2 M | -301.4 M | |
| Net Loss | -198.3 M | -188.4 M | |
| Net Income | 262.8 M | 209.4 M | |
| Income Tax Expense | 423.3 M | 444.5 M | |
| Net Income From Continuing Ops | 262.8 M | 315.7 M | |
| Interest Income | 770.3 M | 594.5 M | |
| Net Interest Income | 623.9 M | 556.7 M | |
| Change To Netincome | 344.9 M | 362.2 M | |
| Net Income Per Share | 0.62 | 1.18 | |
| Income Quality | 1.07 | 1.12 | |
| Net Income Per E B T | 2.04 | 1.82 |
Prospect Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Prospect Capital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Prospect Capital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Prospect Capital's important profitability drivers and their relationship over time.
Use Prospect Capital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Prospect Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Prospect Capital will appreciate offsetting losses from the drop in the long position's value.Prospect Capital Pair Trading
Prospect Capital Pair Trading Analysis
The ability to find closely correlated positions to Prospect Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Prospect Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Prospect Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Prospect Capital to buy it.
The correlation of Prospect Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Prospect Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Prospect Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Prospect Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Prospect Capital position
In addition to having Prospect Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Chemicals Thematic Idea Now
Chemicals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Chemicals Theme or any other thematic opportunities.
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Check out Your Equity Center. For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Prospect Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Prospect Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Prospect Capital's income statement, its balance sheet, and the statement of cash flows.