SuRo Capital: The Valuation May Provide Some Margin Of Safety

Aug. 11, 2023 2:58 PM ETSuRo Capital Corp. (SSSS)SSSS8 Comments
Chimerix Research
120 Followers

Summary

  • SuRo Capital's portfolio has experienced a significant drop in valuation, causing the stock to trade at a 45% discount to its book value.
  • The portfolio is concentrated in around 10 companies, mostly valued at EV/Sales multiples that are now well aligned with the market average/consensus.
  • The upside potential lies in multiples expanding again due to the Fed cutting rates, with an estimated potential upside of 57% - 110% from the current price.
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SuRo Capital (NASDAQ:SSSS) has a portfolio of private and public tech and innovative companies that have been subject to a bloodbath of valuations contraction. In the last year, the company saw a drop of more than $100 million (roughly 50%) of the fair value

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