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Is this Large Market Cap Stock target price reasonable for Prospect Capital Corporation (NASDAQ:PSEC)?

The company in question is, Prospect Capital Corporation (NASDAQ:PSEC) currently with a stock price of 8 (-1.84% today). The market cap for Prospect Capital Corporation is 2933.67, and is in the sector Financial, and Asset Management industry. The target price for Prospect Capital Corporation is 8.18. Currently Prospect Capital Corporation is trading with a P/E of 28.2, and a forward P/E of 8.17. Average volume for Prospect Capital Corporation is 1859.87 and so far today it is 867881.

Performance in the last year for Prospect Capital Corporation has been 24.73%. For EPS growth, Prospect Capital Corporation has seen a growth of -70.40%, and is looking to grow in the next year to 0.81%. More long term stats show that EPS growth has been -26.70% over the last five years and could be 5.00% for the next five years. Prospect Capital Corporation has seen sales growth quarter over quarter at -2.90%, with EPS growth quarter over quarter at 1.00%. The 20-day simple moving average is -1.99%, with the 200-day simple moving average coming to 11.48%.

Since the IPO date for Prospect Capital Corporation on the 7/27/2004, Prospect Capital Corporation has seen performance year to date to be 28.97%. With Prospect Capital Corporation trading at 8, the dividend yield is 12.27%, and the EPS is 0.29.

So could Prospect Capital Corporation, be undervalued? Well as said before P/E is 28.2. The PEG is 5.64, P/S is 3.7 and the P/B is at 0.85. The P/cash is 9.23, with P/free cash flow at 5.58.

Prospect Capital Corporation ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.52, and total debt/equity at 0.79.

In terms of margins, Prospect Capital Corporation has a gross margin of 51.20%, an operating margin of 46.90% and a profit margin of 13.10%.Payout ratio for Prospect Capital Corporation is 345.70%. Return on assets come to 1.60% with return on investment coming to 6.00%.

Insider ownership for Prospect Capital Corporation, is at 0.10% and institutional ownership comes to 12.20%. Outstanding shares are at 359.96. While shares float is 333.94. The float short is currently 9.15%, and short ratio is 16.43.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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