Capital Southwest Corporation (CSWC) Stock

Capital Southwest Corporation (CSWC) is a Financial Services stock trading at $23.46 (as of 2026-07-24), with a market capitalization of $1.46B and a trailing P/E of 12.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Capital Southwest Corporation is a business development company that makes investments in middle market companies through credit and equity strategies, including mezzanine and later-stage opportunities. It provides financing and equity co-investments for situations such as growth financing and buyouts, serving businesses seeking capital for expansion, acquisitions, and recapitalizations.

Understand Capital Southwest Corporation: how it makes money

Capital Southwest Corporation invests in middle market companies through credit and private equity, including mezzanine and later stage and growth and buyouts and recapitalizations, and it makes money from returns on those investments.

The profit model is structurally tied to how well its private-credit and private-equity and venture capital investments perform, since its business is defined by making those investments in middle market companies.

Business quality (Solid): The core business model and investment focus are clear from the provided facts, but no segment breakdown, operational KPI labels, or quarter-specific performance details were provided here, which limits a deeper validation of drivers.

Valuation: At 12× earnings, CSWC trades 20% above the Asset Management average (10×). Note: one-time items can distort reported P/E.

Bull case

Focused middle market investment strategy: The firm specializes in credit and private equity and venture capital investments in middle market companies, including growth and mezzanine and later stage and mature and late venture and buyouts and recapitalizations and growth capital.
Structured investment eligibility: It sets clear boundaries on what it will not invest in, including startups and publicly traded companies and certain sectors like real estate developments and project finance and oil and gas exploration and troubled companies and turnarounds.

Bear case

Potential sensitivity to credit and private-company valuation: Because the company invests in credit and private equity and venture capital in middle market companies, investment performance can be affected by credit conditions and the ability to realize value from private holdings.
More limited opportunity set from its exclusions: The stated exclusions include startups, publicly traded companies, real estate developments, project finance, oil and gas exploration, and turnarounds, which can constrain where opportunities come from.

Valuation — source: SEC EDGAR (first-party)
Price	$23.46
Market Cap	$1.46B
P/E Ratio	12.9
Price / Book	1.44
Price / Sales	6.28
FCF Yield	-13.3%
DCF Value (model)	$25.29
DCF Upside vs Price	7.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$232.10M
Net Margin	48.7%
Revenue Growth (YoY)	13.5%
EPS Growth (YoY)	-19.5%
FCF Growth (YoY)	-11.5%

Valuation vs Sector & Industry
Stock P/E	12.9
Sector P/E (Financial Services)	8.9
Industry P/E (Asset Management)	8.9
vs Sector	45.0%
vs Industry	44.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	TWO SIGMA INVESTMENTS, LP ($51.97M)
Institutional Holders Tracked	10

Company
Sector	Financial Services
Industry	Asset Management
CEO	Michael Scott Sarner
Employees	27
Country	US
IPO Date	1980-03-17

Related Companies (Business model: Closed-End Fund; 8 closest by market cap; US-domiciled)

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.