Capital Southwest (NAS:CSWC) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Capital Southwest Forward PE Ratio Related Terms
Capital Southwest Forward PE Ratio Historical Data
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The historical data trend for Capital Southwest's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Capital Southwest Forward PE Ratio Chart
Capital Southwest Annual Data
Trend
2020-03
2021-03
2022-03
2023-03
2024-03
2025-03
2026-03
Forward PE Ratio
7.50
11.93
12.09
6.98
9.51
9.17
9.60
Capital Southwest Quarterly Data
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
12.03
12.80
11.44
7.50
8.30
8.90
10.57
11.93
12.77
12.09
9.43
10.65
7.13
6.98
7.62
8.66
8.89
9.51
10.24
10.52
8.77
9.17
9.41
9.81
9.91
9.60
CSWC vs BTT, QQQX, NFJ: Forward PE Ratio Comparison
For the Asset Management subindustry, Capital Southwest's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Capital Southwest Forward PE Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Capital Southwest's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Capital Southwest (CSWC) has a Forward PE Ratio of 10.83 as of Jul. 01, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Capital Southwest and its competitors. According to the industry distribution chart, Capital Southwest ranks #166 out of 323 companies in the Asset Management industry, placing it in the top 51.4%.
Is Capital Southwest's Forward PE Ratio too high?
Capital Southwest's current Forward PE Ratio is 10.83. The Asset Management industry median Forward PE Ratio is 10.57. Capital Southwest's value of 10.83 is 2.5% above this industry median. Based on the distribution chart, Capital Southwest ranks #166 out of 323 companies in the Asset Management industry, which is below the industry midpoint. Overall, Capital Southwest has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's Forward PE Ratio compare to BTT and QQQX?
According to the Asset Management industry distribution chart, Capital Southwest ranks #166 out of 323 companies for Forward PE Ratio. This places Capital Southwest in the lower half of its industry. The industry median Forward PE Ratio is 10.57. Capital Southwest's value of 10.83 is 2.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Asset Management company?
The median Forward PE Ratio among Asset Management companies is 10.57, based on 323 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital Southwest's current Forward PE Ratio of 10.83 is 2.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Capital Southwest and its competitors. For the Asset Management industry, the median Forward PE Ratio is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Southwest's current Forward PE Ratio is 10.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Southwest stock overvalued right now?
Based on GuruFocus' analysis, Capital Southwest (CSWC) is currently considered Fairly Valued. The stock's GF Value™ is $25.73, compared to a current price of $23.78 — trading 7.6% below its estimated fair value. The current Forward PE Ratio is 10.83 and 2.5% above the Asset Management industry median of 10.57. Capital Southwest's overall GF Score™ is 57/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Capital Southwest (CSWC), the current Forward PE Ratio is 10.83 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Capital Southwest (CSWC) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Southwest stock appears to be undervalued.
The current stock price of $23.78 is trading 7.6% below its estimated GF Value™ of $25.73.
GuruFocus considers Capital Southwest to be Fairly Valued.
Key valuation signals for CSWC:
Forward PE Ratio: 10.83
GF Value™: $25.73 vs. price of $23.78 (7.6% below fair value)
Industry Position: 2.5% above the Asset Management median (#166 of 323)
No single metric tells the full story. See the CSWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Southwest Corp is a U.S.-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source of revenue comprises interest income and dividend income from investments made as well as management fees.
57GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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