As of June 20, 2025, BlackRock Capital Investment Corp's estimated intrinsic value ranges from $0.92 to $5.97 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $4.80 | +30.3% |
| Discounted Cash Flow (5Y) | $4.45 | +20.9% |
| Dividend Discount Model (Multi-Stage) | $3.91 | +6.1% |
| Dividend Discount Model (Stable) | $5.97 | +62.3% |
| Earnings Power Value | $0.92 | -75.0% |
Is BlackRock Capital Investment Corp (BKCC) undervalued or overvalued?
With the current market price at $3.68, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate BlackRock Capital Investment Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.63 | 0.7 |
| Cost of equity | 6.7% | 8.8% |
| Cost of debt | 5.4% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.09 | 1.09 |
| After-tax WACC | 5.3% | 7.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $4 | $606M | 79.7% |
| 10-Year Growth | $5 | $631M | 64.3% |
| 5-Year EBITDA | $4 | $572M | 78.5% |
| 10-Year EBITDA | $4 | $603M | 62.7% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $22M |
| Discount Rate (WACC) | 7.7% - 5.3% |
| Enterprise Value | $286M - $413M |
| Net Debt | $283M |
| Equity Value | $3M - $130M |
| Outstanding Shares | 73M |
| Fair Value | $0 - $2 |
| Selected Fair Value | $0.92 |
| Metric | Value |
|---|---|
| Market Capitalization | $267M |
| Enterprise Value | $550M |
| Trailing P/E | 10.18 |
| Forward P/E | 14.32 |
| Trailing EV/EBITDA | 17.05 |
| Current Dividend Yield | 1088.05% |
| Dividend Growth Rate (5Y) | -11.35% |
| Debt-to-Equity Ratio | 1.09 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $1.44 |
| Discounted Cash Flow (5Y) | 25% | $1.11 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.78 |
| Dividend Discount Model (Stable) | 15% | $0.90 |
| Earnings Power Value | 10% | $0.09 |
| Weighted Average | 100% | $4.32 |
Based on our comprehensive valuation analysis, BlackRock Capital Investment Corp's weighted average intrinsic value is $4.32, which is approximately 17.4% above the current market price of $3.68.
Key investment considerations:
Given these factors, we believe BlackRock Capital Investment Corp is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.