SAR Valuation

Saratoga Investment Corp

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25.540

+0.12(0.472%)1D

Overview
Forecast
Valuation
Earnings

SAR Relative Valuation

SAR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SAR is overvalued; if below, it's undervalued.

Historical Valuation

Saratoga Investment Corp (SAR) is now in the Fair zone, suggesting that its current forward PE ratio of 9.60 is considered Fairly compared with the five-year average of 9.00. The fair price of Saratoga Investment Corp (SAR) is between 18.44 to 28.82 according to relative valuation methord.

Relative Value

Fair Zone

18.44-28.82

Current Price：25.42

Fair

9.64

Trailing

Forward

0.00

EV/EBITDA

Saratoga Investment Corp. (SAR) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

0.00

EV/EBIT

Saratoga Investment Corp. (SAR) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.

3.12

Saratoga Investment Corp. (SAR) has a current PS of 3.12. The 5-year average PS is 3.09. The thresholds are as follows: Strongly Undervalued below 1.34, Undervalued between 1.34 and 2.21, Fairly Valued between 3.96 and 2.21, Overvalued between 3.96 and 4.84, and Strongly Overvalued above 4.84. The current Forward PS of 3.12 falls within the Historic Trend Line -Fairly Valued range.

-3.95

P/OCF

Saratoga Investment Corp. (SAR) has a current P/OCF of -3.95. The 5-year average P/OCF is 0.23. The thresholds are as follows: Strongly Undervalued below -24.99, Undervalued between -24.99 and -12.38, Fairly Valued between 12.83 and -12.38, Overvalued between 12.83 and 25.44, and Strongly Overvalued above 25.44. The current Forward P/OCF of -3.95 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Saratoga Investment Corp. (SAR) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Saratoga Investment Corp (SAR) has a current Price-to-Book (P/B) ratio of 1.00. Compared to its 3-year average P/B ratio of 0.89 , the current P/B ratio is approximately 11.88% higher. Relative to its 5-year average P/B ratio of 0.89, the current P/B ratio is about 12.10% higher. Saratoga Investment Corp (SAR) has a Forward Free Cash Flow (FCF) yield of approximately 43.68%. Compared to its 3-year average FCF yield of -20.77%, the current FCF yield is approximately -310.33% lower. Relative to its 5-year average FCF yield of -24.66% , the current FCF yield is about -277.11% lower.

1.00

P/B

Median3y

0.89

Median5y

0.89

43.82

FCF Yield

Median3y

-20.77

Median5y

-24.66

Competitors Valuation Multiple

The average P/S ratio for SAR's competitors is 3.09, providing a benchmark for relative valuation. Saratoga Investment Corp Corp (SAR) exhibits a P/S ratio of 3.12, which is 1.04% above the industry average. Given its robust revenue growth of 15.12%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SAR.N

Saratoga Investment Corp

Stellus Capital Investment Corp

Pennantpark Investment Corp

Palmer Square Capital BDC Inc

Triplepoint Venture Growth BDC Corp

2.32

14.33%

273.39M

Performance Decomposition

Market capitalization of SAR increased by 8.36% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 21.04 to 38.53.

The secondary factor is the Revenue Growth, contributed 15.12%to the performance.

Overall, the performance of SAR in the past 1 year is driven by Margin Expansion. Which is more sustainable.

15.12%

31.41M → 36.16M

Revenue Growth

83.13%

21.04 → 38.53

Margin Expansion

-89.89%

102.22 → 10.33

P/E Change

8.36%