Palmer Square Capital BDC Inc. (PSBD): fair value, margin of safety and Wheel Score

Is PSBD undervalued?

At 9.99 (close of 5 Nov 2026), PSBD trades 100% below the GLS average fair value of 35,260.74. That average comes from 2 models run on the latest filings, and 2 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Palmer Square Capital BDC Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The average is built from just 2 models (10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

The nightly engine files PSBD under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for PSBD

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Palmer Square Capital BDC Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability PSBD scores 5.3/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.

Returns on capital are thin or negative - ROIC -0.3%, ROE -0.7%, ROA -0.3% - with debt at 1.54 times equity and a free-cash-flow yield of 35156.4%.

The dividend yield is high at 15.72% (payout ratio -4206%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 6/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 32: No options

No options are listed on Palmer Square Capital BDC Inc. in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 32, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 375k shares a day on a market cap of $306M, with a beta of 0.97; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for PSBD in the nightly calendar.

No analyst upgrades or downgrades were recorded in the last 30 days.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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