Using the industry peer median EV/Revenue multiple (trailing + forward), Ellington Credit Company (EARN) has a fair value of $5.77 based on 4 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Ellington Credit CompanyEARN | 180 | 4.2x | 9.8x |
| Innventure, Inc. | 341 | 152.6x | — |
| Eagle Financial Services, Inc. | 209 | 2.5x | 3.3x |
| SWK Holdings Corporation | 192 | 4.5x | 4.6x |
| Barings Participation Investors | 191 | 12.5x | — |
| Industry Median | 8.5x | 3.9x | |
| (*) Revenue | 43 | 18 | |
| = Enterprise Value | 361 | 72 | |
| (-) Net Debt | 0 | 0 | |
| Equity Value | 361 | 72 | |
| (/) Outstanding shares | 38 | 38 | |
| Fair Price | $10 | $2 | |
Using the Earnings Power Value framework with a WACC of 7.3% and normalized earnings of $4.8M, the company has a fair value of $1.74 per share. The EPV range is $1.45 – $2.19 based on WACC sensitivity (5.8% – 8.8%).
| Low | Selected | High | |
|---|---|---|---|
| Normalized Earnings | 5 | 5 | 5 |
| (/) WACC | 8.8% | 7.3% | 5.8% |
| Enterprise Value | 54 | 65 | 82 |
| (-) Net debt | 0 | 0 | 0 |
| Equity Value | 54 | 65 | 82 |
| (/) Outstanding shares | 38 | 38 | 38 |
| Fair Price | $1.45 | $1.74 | $2.19 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.