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PSBDPalmer Square Capital BDC Inc.
$10.41$324M
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  4. Financial Ratios

Palmer Square Capital BDC Inc. (PSBD) Financial Ratios

Latest Ratios: P/E Ratio -105.6x · EV/EBITDA 0.6x · ROE -0.6%. (2020–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PSBD Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Market Cap$324M$392M$496M————
Enterprise Value$1.0B$1.1B$1.3B————
P/E Ratio →-105.58—10.41————
P/S Ratio2.913.524.49————
P/B Ratio0.720.840.92————
P/FCF2.022.444.64————
P/OCF2.022.444.64————

P/E links to full P/E history page with 30-year chart

PSBD EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
EV / Revenue—9.9411.76————
EV / EBITDA0.580.6227.21————
EV / EBIT22.1223.5727.21————
EV / FCF—6.8812.15————

PSBD Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Gross Margin85.1%85.1%47.4%71.1%147.5%70.8%79.7%
Operating Margin42.2%42.2%43.2%70.2%150.8%64.5%128.7%
Net Profit Margin-2.9%-2.9%43.2%70.2%150.8%64.5%109.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
ROE-0.6%-0.6%9.5%26.1%-18.3%5.4%10.6%
ROA-0.2%-0.2%3.7%9.9%-6.5%2.0%4.0%
ROIC2.8%2.8%2.9%7.7%-5.3%1.6%—
ROCE3.7%3.7%3.9%10.2%-7.0%2.2%4.9%

PSBD Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Debt / Equity1.541.541.501.391.761.441.55
Debt / EBITDA0.400.4016.875.95—34.1016.08
Net Debt / Equity—1.541.491.381.761.431.55
Net Debt / EBITDA0.400.4016.815.93—34.0416.05
Debt / FCF—4.447.5111.20——24.24
Interest Coverage0.000.000.822.42-3.182.21—

PSBD Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Current Ratio0.090.090.290.880.810.210.74
Quick Ratio0.090.090.290.880.810.210.74
Cash Ratio0.090.090.030.140.030.010.04
Asset Turnover—0.090.080.14-0.050.020.04
Inventory Turnover———————
Days Sales Outstanding———————

PSBD Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Dividend Yield16.5%——————
Payout Ratio———31.5%—33.0%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Earnings Yield——9.6%————
FCF Yield49.6%41.0%21.5%————
Buyback Yield5.6%——————
Total Shareholder Yield22.1%——————
Shares Outstanding—$32M$33M$33M$32M$32M$32M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Portfolio Valuation Volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Market Valuation Reflects Asset Uncertainty

According to recent market data, PSBD trades at a P/B ratio of 0.74, which suggests that investors are pricing in a significant discount to net asset value, likely reflecting skepticism regarding the firm's ability to stabilize its portfolio valuation in the current credit environment.

The negative P/E of -108.62 underscores the lack of consistent earnings, making traditional valuation multiples less useful for assessing the firm's intrinsic value. Investors should monitor whether this discount to book value represents a genuine value opportunity or a structural recognition of the risks inherent in the firm's broadly syndicated loan portfolio.

Capital Efficiency Impaired by Volatility

As reported in financial statements, PSBD's ROE has fluctuated from a peak of 4.8% in 2023Q4 to negative territory in recent periods, indicating that the firm is currently struggling to generate meaningful returns on its invested capital base compared to its historical performance.

The decay in ROIC appears driven by the firm's inability to maintain stable margins amidst mark-to-market devaluations. This trend suggests that the company's capital allocation strategy may be failing to overcome the headwinds of secondary market volatility, warranting further investigation into the sustainability of its current investment approach.

Working Capital and Asset Turnover

Based on the provided figures, PSBD's asset turnover remains extremely low at 0.00 to 0.03, which is characteristic of a BDC but highlights the firm's reliance on interest income rather than high-velocity asset deployment to drive its financial performance.

The erratic nature of the firm's DSO, which spiked to 49,193 in 2026Q1, suggests significant operational friction or accounting anomalies in the collection of interest income. Such inefficiency may indicate that the firm's internal processes for managing its credit portfolio are not yet optimized for a public BDC structure.

Deleveraging Amidst Portfolio Stress

As indicated by the most recent financial data, PSBD's debt-to-equity ratio dropped to 0.00 in 2026Q1 from a high of 1.54 in 2025Q4, suggesting a rapid and potentially forced deleveraging event that has left the firm with minimal leverage to amplify returns.

While a low debt-to-equity ratio is often viewed as a sign of safety, in the context of a BDC, it may actually signal an inability to access debt markets or a strategic retreat from risk. This lack of leverage likely suppresses ROE and limits the firm's capacity to grow its investment portfolio in the near term.

Misapplication of Dividend Yield Metric

The 16.1% dividend yield is frequently misapplied by investors as a measure of sustainable income, when in reality, it may be masking the underlying erosion of the firm's net asset value and the lack of recurring cash flow to support such distributions.

Investors should focus on Net Investment Income (NII) rather than the headline dividend yield, as the latter can be artificially inflated by capital returns or unsustainable payout policies. Relying on yield alone obscures the fundamental risk that the firm's portfolio may be failing to generate the cash required to maintain its dividend over the long cycle.

Download Financial Ratios Data

Includes 30+ ratios · 6 years · Updated daily

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PSBD — Frequently Asked Questions

Quick answers to the most common questions about buying PSBD stock.

What is Palmer Square Capital BDC Inc.'s P/E ratio?

Palmer Square Capital BDC Inc.'s current P/E ratio is -105.6x. The historical average is 10.4x.

What is Palmer Square Capital BDC Inc.'s EV/EBITDA?

Palmer Square Capital BDC Inc.'s current EV/EBITDA is 0.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.

What is Palmer Square Capital BDC Inc.'s ROE?

Palmer Square Capital BDC Inc.'s return on equity (ROE) is -0.6%. The historical average is 5.5%.

Is PSBD stock overvalued?

Based on historical data, Palmer Square Capital BDC Inc. is trading at a P/E of -105.6x. Compare with industry peers and growth rates for a complete picture.

What is Palmer Square Capital BDC Inc.'s dividend yield?

Palmer Square Capital BDC Inc.'s current dividend yield is 16.53%.

What are Palmer Square Capital BDC Inc.'s profit margins?

Palmer Square Capital BDC Inc. has 85.1% gross margin and 42.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Palmer Square Capital BDC Inc. have?

Palmer Square Capital BDC Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.