Using the industry peer median P/E Multiples multiple (trailing + forward), Stellus Capital Investment Corporation (SCM) has a fair value of $6.72 based on 6 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Stellus Capital Investment CorporationSCM | 269 | 10.0x | 8.4x |
| Diamond Hill Investment Group, Inc. | 464 | 9.6x | 13.6x |
| Gladstone Capital Corporation | 414 | 7.2x | 5.5x |
| Source Capital, Inc. | 369 | 6.2x | 2.8x |
| Barings Corporate Investors | 363 | 10.1x | — |
| PennantPark Investment Corporation | 296 | 9.1x | 5.0x |
| Runway Growth Finance Corp. | 250 | 7.4x | 4.1x |
| Industry Median | 8.2x | 5.0x | |
| (*) Profit after tax | 27 | 32 | |
| Equity Value | 223 | 158 | |
| (/) Outstanding shares | 28 | 28 | |
| Fair Price | $8 | $6 | |
Using the PEG framework with analyst consensus forward EPS growth of 8.0%, the company has a fair value of $8.26 based on NTM EPS (FY2026) of $1.03. The current PEG ratio is 1.78.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 5.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $1.03 |
| Fair Value | $8.26 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.95 | — | — |
| FY2026E | $1.03 | +8.6% | 3 |
| FY2027E | $1.05 | +1.7% | 3 |
2Y Forward EPS CAGR: 5.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $33.6M | $1.72 | — |
| FY2022 | $14.5M | $0.74 | -57.0% |
| FY2023 | $17.5M | $0.80 | +8.1% |
| FY2024 | $45.8M | $1.79 | +123.7% |
| FY2025 | $27.0M | $0.95 | -46.9% |
4Y Historical EPS CAGR: -13.8%
Using the Two-Stage Dividend Discount Model with a Cost of Equity of 2156.8% and projected dividend growth of 0.0%, the fair value is $0.07 per share. The DDM range is $0.07 – $0.07 based on sensitivity analysis across Cost of Equity and growth rate assumptions.
| Year | DPS | Payout Ratio | YoY Growth |
|---|---|---|---|
| 2025 | — | 0.0% | -100.0% |
| 2024 | $1.47 | 81.9% | -9.1% |
| 2023 | $1.61 | 202.6% | +18.7% |
| 2022 | $1.36 | 183.5% | +26.0% |
| 2021 | $1.08 | 62.7% | — |
| Year | Projected DPS | Growth | Discount Factor | Present Value |
|---|---|---|---|---|
| 2026 | $1.47 | 0.0% | 0.0443 | $0.07 |
| 2027 | $1.47 | 0.0% | 0.0020 | $0.00 |
| 2028 | $1.47 | 0.0% | 0.0001 | $0.00 |
| 2029 | $1.47 | 0.0% | 0.0000 | $0.00 |
| 2030 | $1.47 | 0.0% | 0.0000 | $0.00 |
| Terminal Value | $1.50 DPS | 2.5% | $0.00 |
Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.
| Ke \ Growth | 0.0% | 0.0% | 0.0% | 1.0% | 2.0% |
|---|---|---|---|---|---|
| 2154.8% | $0 | $0 | $0 | $0 | $0 |
| 2155.8% | $0 | $0 | $0 | $0 | $0 |
| 2156.8% | $0 | $0 | $0 | $0 | $0 |
| 2157.8% | $0 | $0 | $0 | $0 | $0 |
| 2158.8% | $0 | $0 | $0 | $0 | $0 |
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.