This 10.7% Yielder Is Trading at a Significant Discount

With share prices soaring for most of the last decade, the U.S. stock market has gotten bloated. Even with the recent market correction, valuations of U.S. equities are still much higher than their historical average. Consider this: Historically, S&P 500 companies had an average price-to-earnings (P/E) multiple of 15.7 times. Today, the ratio stands at more than 24.1 times. Still, investors who know where to look can find value in this market...

There is a very simple reason why PennantPark Investment Corp. (NASDAQ:PNNT) deserves income investors’ attention: value. PennantPark Investment Corp., for instance, had a net asset value of $9.10 per share the last time it reported. Yet the company’s shares trade at just around $6.70 apiece. Therefore, if the value of PNNT’s portfolio hasn’t deteriorated that much over the last several months, its current stock price would represent a discount of over 25% from its net asset value.

Source: Income Investors

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