Latest Ratios: P/E Ratio 12.4x · EV/EBITDA 13.1x · ROE 11.9%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.5B | $1.1B | $1.0B | $534M | $542M | $422M | $206M | $352M | $275M | $268M |
| Enterprise Value | $2.6B | $2.6B | $2.1B | $1.8B | $1.1B | $1.1B | $772M | $495M | $558M | $362M | $271M |
| P/E Ratio → | 12.37 | 11.64 | 15.18 | 12.18 | 16.16 | 12.69 | 8.30 | — | 10.63 | 6.98 | 11.43 |
| P/S Ratio | 5.94 | 5.92 | 6.97 | 6.68 | 5.91 | 5.27 | 5.82 | 13.18 | 5.77 | 4.73 | 6.82 |
| P/B Ratio | 1.53 | 1.44 | 1.29 | 1.35 | 0.90 | 1.29 | 1.26 | 0.76 | 1.08 | 0.89 | 0.94 |
| P/FCF | — | — | — | — | — | — | — | 8.25 | — | — | — |
| P/OCF | — | — | — | — | — | — | — | 8.25 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.40 | 12.55 | 11.54 | 12.73 | 10.29 | 10.64 | 31.74 | 9.14 | 6.24 | 6.88 |
| EV / EBITDA | 13.07 | 13.05 | 24.10 | 19.74 | 26.85 | 21.58 | 13.42 | — | 15.81 | 8.99 | 10.41 |
| EV / EBIT | 13.56 | 13.69 | 25.88 | 20.75 | 28.70 | 22.61 | 13.90 | — | 16.45 | 9.20 | 10.60 |
| EV / FCF | — | — | — | — | — | — | — | 19.88 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 94.3% | 94.3% | 66.5% | 71.7% | 68.0% | 80.6% | 100.0% | -1.5% | 80.1% | 91.6% | 97.5% |
| Operating Margin | 76.9% | 76.9% | 48.5% | 55.6% | 44.4% | 45.5% | 76.6% | -103.5% | 55.6% | 67.8% | 64.9% |
| Net Profit Margin | 45.9% | 45.9% | 43.1% | 54.8% | 36.6% | 41.6% | 70.1% | -143.3% | 54.1% | 67.7% | 59.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.9% | 11.9% | 8.6% | 12.4% | 6.5% | 11.3% | 16.7% | -7.5% | 10.4% | 13.2% | 8.4% |
| ROA | 5.6% | 5.6% | 4.1% | 5.9% | 3.0% | 5.0% | 7.7% | -3.9% | 6.8% | 10.6% | 7.7% |
| ROIC | 7.1% | 7.1% | 3.5% | 4.6% | 2.8% | 4.2% | 6.4% | -2.2% | 5.4% | 8.3% | 6.6% |
| ROCE | 9.3% | 9.3% | 4.6% | 6.0% | 3.6% | 5.5% | 8.4% | -2.8% | 7.0% | 10.8% | 8.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.12 | 1.12 | 1.08 | 1.02 | 1.08 | 1.26 | 1.13 | 1.11 | 0.66 | 0.31 | 0.09 |
| Debt / EBITDA | 5.77 | 5.77 | 11.21 | 8.67 | 14.89 | 10.77 | 6.63 | — | 6.12 | 2.37 | 0.96 |
| Net Debt / Equity | — | 1.09 | 1.03 | 0.98 | 1.04 | 1.23 | 1.04 | 1.06 | 0.63 | 0.28 | 0.01 |
| Net Debt / EBITDA | 5.62 | 5.62 | 10.70 | 8.31 | 14.39 | 10.54 | 6.08 | — | 5.84 | 2.17 | 0.10 |
| Debt / FCF | — | — | — | — | — | — | — | 11.63 | — | — | — |
| Interest Coverage | 2.81 | 2.81 | 1.44 | 1.96 | 1.39 | 2.35 | 3.10 | -1.02 | 2.79 | 8.08 | 25.86 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | — | — | — | — | — | — | — | 3.00 | 3.64 |
| Quick Ratio | — | — | — | — | — | — | — | — | — | 3.00 | 3.64 |
| Cash Ratio | — | — | — | — | — | — | — | — | — | 1.75 | 3.11 |
| Asset Turnover | — | 0.11 | 0.09 | 0.10 | 0.07 | 0.11 | 0.10 | 0.03 | 0.11 | 0.14 | 0.12 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 9.5% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 130.3% | 130.3% | 177.6% | 117.8% | 214.9% | 94.1% | 115.2% | — | 128.7% | 47.3% | 25.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.1% | 8.6% | 6.6% | 8.2% | 6.2% | 7.9% | 12.0% | — | 9.4% | 14.3% | 8.8% |
| FCF Yield | — | — | — | — | — | — | — | 12.1% | — | — | — |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 9.5% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $66M | $51M | $41M | $30M | $23M | $19M | $18M | $17M | $16M | $16M |
Portfolio credit quality concentration
Based on current market data, CSWC trades at a P/B of 1.51x, which represents a significant premium compared to the broader BDC peer group, suggesting that investors are pricing in the structural advantages of its internal management model and historical success in preserving net asset value.
The forward P/E of 9.70x implies that the market expects sustained earnings growth, likely driven by the firm's ability to capture equity upside in its lower middle market portfolio. This valuation premium warrants caution, as it leaves little margin for error should the firm's credit performance deteriorate or if the current interest rate environment shifts unfavorably.
According to recent financial statements, CSWC's ROIC has remained relatively modest, fluctuating between 0.8% and 1.9% over the last ten quarters, which indicates that the firm's ability to generate returns on invested capital is heavily dependent on its use of financial leverage rather than pure operational efficiency.
The divergence between ROE and ROIC suggests that the firm's capital structure is the primary engine for shareholder returns. Investors should monitor whether the firm can maintain these return levels as it approaches its regulatory leverage limits, as further expansion may require dilutive equity issuance.
As reported in recent regulatory filings, CSWC's debt-to-equity ratio has climbed to 1.12x as of 2026Q4, signaling that the firm is utilizing its balance sheet capacity to fund ongoing investment originations and is approaching the upper bounds of its historical leverage comfort zone.
The interest coverage ratio of 2.58x in 2026Q4 suggests that while debt service remains manageable, the firm has less flexibility to absorb shocks compared to periods of lower leverage. This trend warrants close investigation, as any further increase in debt could constrain the firm's ability to navigate a potential economic downturn.
Based on reported figures, CSWC's asset turnover remains consistently low at 0.03, reflecting the nature of a BDC where the primary assets are long-term debt and equity investments rather than high-velocity inventory, making traditional working capital metrics like the cash conversion cycle less relevant for performance assessment.
The variability in DSO, which ranged from 51 to 70 days over the observed period, suggests that the timing of interest and fee receipts from portfolio companies is inconsistent. This volatility in cash collection cycles may create quarterly noise that does not necessarily reflect the underlying health of the investment portfolio.
The P/E ratio is frequently misapplied to CSWC, as it fails to account for the non-cash unrealized gains and losses inherent in the valuation of Level 3 assets, which can significantly distort reported net income and lead to an inaccurate assessment of the firm's true earning power.
Investors should instead prioritize Core Net Investment Income (Core NII) to better understand the recurring cash flows available for dividends. Relying on P/E multiples obscures the firm's actual dividend durability and ignores the impact of the 'equity tail' on long-term shareholder value creation.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CSWC stock.
Capital Southwest Corporation's current P/E ratio is 12.4x. The historical average is 6.3x. This places it at the 86th percentile of its historical range.
Capital Southwest Corporation's current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.5x.
Capital Southwest Corporation's return on equity (ROE) is 11.9%. The historical average is 7.8%.
Based on historical data, Capital Southwest Corporation is trading at a P/E of 12.4x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Capital Southwest Corporation's current dividend yield is 9.51% with a payout ratio of 130.3%.
Capital Southwest Corporation has 94.3% gross margin and 76.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Capital Southwest Corporation's Debt/EBITDA ratio is 5.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.