3 models fit WhiteHorse Finance Inc. Common Stock and they partly agree: 2 of 3 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Silver79
Valued as a fund or holding company: Net asset value, Dividend discount, and P/E comparison.
ACCE opinionWhiteHorse Finance Inc. Common Stock (WHF)
Fair value (3 models)
$10.56
ACCE price target
$7.40
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $10.83 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $7.96 at the close on 23 Oct 2026, 22:00 CEST.
Models: Net asset value, Dividend discount, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
24.6% below
+32.6% to fair value
ACCE score
71
out of 100
Analysts
0% buy
5 covering
P/E
10.2x
forward 8.1x
1-year return
+12.6%
Dividend yield
12.59%
WhiteHorse Finance Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
WhiteHorse Finance is a business development company that makes senior secured loans to lower middle-market American companies, funded largely by its own equity and a credit facility, and it pays out most of its income to shareholders as dividends. Its edge is a narrow, relationship-driven origination franchise in a segment where the big private credit platforms often don't bother to compete, and the 66% operating margin reflects how little overhead the vehicle carries against its loan book. Revenue has fallen 23.7%, so the investment case rests on whether net investment income holds up as the portfolio is repriced and credit losses stay contained, which is the first thing to check. At a trailing P/E of 9.5 and a forward P/E of 7.1, the market is pricing in a further earnings decline, and a 6.7% ROE with a $165M market cap leaves little room for error, so it merits a look at the non-accrual trend and dividend coverage before anything else.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
high
Revenue falling sharply
Revenue fell 23.7% year over year and 8.5% quarter over quarter, while the 5-year revenue CAGR is only +1.0%. Earnings growth of +398.5% looks driven by a low base, not operating momentum.
moderate
Leverage above one times equity
Debt to equity is 1.25 and ROE is +6.7%, so returns on equity are thin relative to the borrowing carried. Interest costs could squeeze earnings if revenue keeps shrinking.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
The stock trades at 24.6% below the model fair value of $10.56, and all three valuation models in the consensus were used.
The forward P/E of 7.9x sits well under the sector median of 11.8x, so the shares look cheap against peers.
Free cash flow of $19M over the last twelve months gives a free cash flow yield of 11.8% at the current price.
Why it could disappoint
Revenue fell 23.7% year over year, far worse than the 1.0% average annual growth of the past five years.
Return on equity of 6.7% and return on invested capital of 2.0% are thin returns for the capital tied up in the business.
Earnings per share missed expectations by 12.0%, with 0.22 reported against 0.25 expected, and no analysts rate the stock Buy or Strong Buy.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where WHF's valuation models land
Price
$7.96
Model fair value
$10.56
Model range
$8.53 to $11.94
Fair value $10.56
Price $7.96
The price is below the whole model range.
Model
Fair value
Upside
Net asset value
Dividend discount
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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