How does Trendshare evaluate GLAD as a worked example?

This example shows how we apply the Trendshare checklist to GLAD: earnings power, cash generation, valuation, and margin of safety. We look at business quality, free cash flow trends, price to earnings, and whether there is a reasonable margin of safety at the current price of 9.80.

Gladstone Capital Corporation Stock Price and Value Analysis

Should you buy Gladstone Capital Corporation stock? (NasdaqGS:GLAD). Let's see how it does in our automated value investing analysis system.

Hold-time calculator

Estimate how long you need to hold Gladstone Capital Corporation to reach your target.

Target type Target price Target total return %

Current price

Expected annual return (compound annual growth rate, CAGR)

Margin of safety (%)

Target price (Trendshare FV)

Include dividend yield
9%

Advantages	Disadvantages
This company is solid. This company has amazingly consistent growth! This company has a large dividend yield!	This company is not making money. This stock looks overpriced.

Inside the GLAD Numbers

	GLAD Price (Gladstone Capital Corporation stock price per share)	$9.80
× PE Ratio Versus Sector The PE ratio measures the reported earnings of a company to its current stock price. While earnings are easy to manipulate on the balance sheet, this ratio gives you a sense of what buyers are willing to pay for the stock—what they believe it will do in the future. Comparing a stock's PE to the average PE of companies in its industry gives you a sense of market sentiment about the stock and how well it fares financially. It's not the only number, nor the most important, but comparing similar companies is valuable. A ratio far above or below that of its peers is significant. Industries are more specific than sectors, so companies within most industries are more similar than are companies within an industry. Be aware that the size and customers of companies are important to their prospects. Close ^[?]	PE Ratio versus Sector	138% higher than other Financial stocks
× PE Ratio Versus Industry The PE ratio measures the reported earnings of a company to its current stock price. While earnings are easy to manipulate on the balance sheet, this ratio gives you a sense of what buyers are willing to pay for the stock—what they believe it will do in the future. Comparing a stock's PE to the average PE of companies in its sector gives you a sense of market sentiment about the stock and how well it fares financially. It's not the only number, nor the most important, but comparing similar companies is valuable. A ratio far above or below that of its peers is significant. Be aware that sectors are very broad, with many types of companies in the same sector. Close ^[?]	PE Ratio versus Industry	80% higher than other Asset Management stocks
× Dividend Yield The dividend yield of a stock is the amount of money paid out in dividends every year divided by the stock's current price. While not every stock pays a dividend, many solid companies pay good dividends. In general, the higher this calculation, the better—think of it like an interest rate of an investment—if the company pays dividends consistently. A high dividend payout rate may indicate that the share price has fallen recently. Be sure that the company is worth investing in before you chase high dividend yields! Close ^[?]	Dividend Yield	9%
	Shares Shorted	589,169

Is Gladstone Capital Corporation Stock on Sale?

Based on our analysis, we believe that you should not buy Gladstone Capital Corporation right now. It might be a good stock to own—we just can't prove it with value analysis right now. Proceed with caution.

Should You Buy GLAD Stock?

Does Gladstone Capital Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.

Step 1 — Snapshot
- Price: 9.80
- Market cap: $336M
- EPS: 0.31
Step 2 — Valuation checks
- P/E: 31.61
- FCF yield: —
- Date checked: Dec 16, 2022
Step 3 — Margin of safety
- Compare price to fair value and safety price.
- Look for durable cash generation and reasonable leverage.
- Decide if it passes your personal checklist.

Illustrative sparkline of recent price-like movements (not an actual price series). The blue line shows a simplified trend; the gray baseline is a notional recent level. This graphic is a visual aid only — use the numeric values in the steps above for decisions.

Gladstone Capital Corporation Stock Price and Value Analysis

Hold-time calculator

Inside the GLAD Numbers

Is Gladstone Capital Corporation Stock on Sale?

Should You Buy GLAD Stock?

Step 1 — Snapshot

Step 2 — Valuation checks

Step 3 — Margin of safety