PSEC — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($2.72)
DCF	$3.63	+33.5%
Graham Number	—	—
Reverse DCF	—	implied g: 2.8%
DDM	$11.12	+309.0%
EV/EBITDA	—	—

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $203.07M

Near-term growth (yrs 1–5)(%)Rev: -5.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.76%

Computed WACC: 3.76%

Cost of equity (Re)9.05%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)41.52%

Debt weight (D/V)58.48%

Results

Intrinsic Value / share$34.76

Current Price$2.72

Upside / Downside+1177.8%

Net Debt (used)$1.81B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$3.69	$5.20	$6.95	$8.98	$11.32
8.0%	$2.37	$3.58	$4.99	$6.62	$8.49
9.0%	$1.45	$2.46	$3.63	$4.98	$6.54
10.0%	$0.77	$1.64	$2.63	$3.78	$5.10
11.0%	$0.26	$1.01	$1.87	$2.87	$4.01

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $-0.82

Book Value / share($)Yahoo: $6.21

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$2.72

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.76%

Terminal growth rate(%)

Computed WACC: 3.76%

Cost of equity (Re)9.05%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)41.52%

Debt weight (D/V)58.48%

Results

Current Price$2.72

Implied Near-term FCF Growth-19.0%

Historical Revenue Growth-5.1%

Historical Earnings Growth—

Base FCF (TTM)$203.07M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.54

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$11.12

Current Price$2.72

Upside / Downside+309.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: —

Target EV/EBITDA multipleCurrent: —×

Net Debt($B)Default: $1.81B

Results

Implied Equity Value / share$-3.76

Current Price$2.72

Upside / Downside-238.2%

Implied EV$0

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