* Note: Prices are in Million (M) USD.
Description:
WhiteHorse Finance, Inc. (WHF) is a prominent business development company focused on delivering tailored financing solutions to private middle-market companies. Established in 2013 and publicly listed since 2014, WHF has cultivated a diverse portfolio largely centered on first and second lien secured debt, aimed at generating stable income and potential capital appreciation for its investors. The company's disciplined investment strategy, combined with a seasoned management team, strategically positions WHF to address the growing capital demands of small to mid-sized businesses, solidifying its status as a reliable partner in the dynamic financial marketplace.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $28 M
Debt : $85 M
EBITDA : $29 M
Net Debt (Debt - Cash): $57 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Asset management
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.34
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $38 M
Revenue 5 Years Ago (2020-12-31): $36 M
Total Growth over 5 Years: 5.2%
5-Year Revenue CAGR (Historical): 1.0%
Forward 5-Year CAGR (Tapered): 0.9%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $23 M
Share Count 5 Years Ago (2021-12-31): $21 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.98
Trailing 12-Month Earnings Per Share (EPS): $0.97
Average Earnings Per Share (EPS): $0.97
Dividend Per Share (DPS): $1
Payout Ratio: 117%
Dividend Yield: 16.20%
⚠️ Caution: Further research is recommended — dividend payout ratio is too high (117%).
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 14 valid ROE years (max 20).Average ROE: 8.9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $8.11
52-Week Low: $5.47
Threshold Price (15% Above 52-Week Low): $6.29
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $157 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 20 points to above WhiteHorse Finance (WHF) stock.
Last 2 Years Avg PE
6.01, Fair Value PE
15, Industry Based PE
15, ROE Based PE
8.93, Risk-Free Anchored PE (25% MoS)
15.03. Based on these 5 values, average assigned is
11.99. Value-Trades has assined P/E value
12.00. An average (Current Year EPS + Next Year EPS) earning per share is
$0.9726.
Fair value using multiple P/Es (blended): $11.67 (PE 11.99 × EPS $0.97)
So the Final Fair Value is: $11.67
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.97
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 6.17 | $6.00 |
| 2 Yrs Avg-PE | 6.01 | $5.85 |
| Value-Trades Assigned | 12 | $11.67 |
Note: Only 2 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
Financials mode
3.5× Net Debt/EBITDA penalty is disabled; Cash/Debt/EBITDA are shown and counted.
