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New Mountain Finance Corporation logo
New Mountain Finance Corporation NMFC
$ 6.86 -0.44%

New Mountain Finance Corporation Financial Ratios 2020-2011 | NMFC

Brief overview of New Mountain Finance Corporation's valuation multiples

Current figures are compared with the company's own five-year history for 2016–2020.

The latest available valuation ratios are P/E 18.96x (median 10.67x), P/B 0.9x (median 0.96x). Multiples are on average 35.7% above their own medians. A substantial share of positive expectations may already be priced in.

The 1/P/E calculation produces a 5.3% earnings yield. It does not capture future growth or capital structure.

Current measures of operating quality are ROE 4.7%, ROA 1.9%. Efficiency ratios are restrained, with capital and assets producing modest returns.

Current PEG is 0.27x; the market pays comparatively little per unit of expected growth.

Banks and insurers require sector-specific reading: the value and return on capital matter more than standard industrial multiples.

Overall picture

New Mountain Finance Corporation combines weak profitability with valuation above its historical norm, leaving limited cushion.

Annual Financial Ratios New Mountain Finance Corporation

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
19.0 10.7 14.6 9.1 8.2 21.3 16.5 8.4 6.9 -

P/S

19.5 11.0 14.0 9.0 8.1 19.7 10.6 5.1 4.5 -

EV/EBITDA

- - - - - - - 13.2 - -

PEG

-0.35 0.27 -0.41 -0.62 0.04 -0.57 -0.33 -0.48 0.92 -

P/B

0.9 0.9 1.1 1.0 1.0 0.8 0.9 0.8 0.6 1.4

P/CF

3.7 -1.7 -2.7 -6.0 15.1 -11.1 -2.6 -10.4 -2.0 -1.6

ROE %

4.73 8.77 7.19 10.57 11.90 3.94 5.68 9.52 9.30 -

ROA %

1.89 3.45 2.95 5.67 6.74 2.06 3.01 9.52 9.20 -

DSO

240.9 107.3 146.2 106.8 61.9 145.2 108.3 - 25.1 -

All numbers in USD currency

Multiples are an important financial analysis tool for the company New Mountain Finance Corporation, allowing investors and analysts to quickly assess the company’s value and investment attractiveness based on the ratio of market indicators to the company’s financial performance. Essentially, multiples express how the market values the company relative to its earnings, revenue, equity, or other key metrics.

Advantages of Using Financial Ratios
  • Simplified Data Analysis
    Financial ratios transform large volumes of accounting data into compact and easily interpretable indicators, significantly simplifying the assessment of the company’s condition.
  • Comparability Between Companies
    Multiples standardize financial metrics, enabling objective comparison of companies of different sizes, industries, and market capitalizations.
  • Identification of Trends and Issues
    Regular analysis of ratios helps track the dynamics of financial health, identify strengths and weaknesses of the business, as well as potential risks.
  • Decision Support
    Financial multiples serve as an important tool for investors, creditors, and company management in making investment, credit, and managerial decisions.
  • Accelerated Assessment of Investment Attractiveness
    Ratios allow quick determination of key performance, liquidity, and financial stability indicators, facilitating prompt evaluation of companies’ attractiveness for investments.

Using multiples enables comparison between companies, even if they differ in size or industry, as they standardize financial data into ratios convenient for analysis. This is especially useful for evaluating companies where direct analysis of financial statements may be complex or require in-depth knowledge.

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