Is Hercules Capital's Pricing Reflective of Its Role in Funding High Growth Companies?

Hercules Capital's recent share price of $18.53 reflects a 1-year return of -2.4%, a 3-year return of 75.0%, and a 5-year return of 104.1%. The stock scores 4 out of 6 on our valuation checks, and the Excess Returns model suggests it is undervalued by 15.2%. The model assumes Hercules Capital can earn more on its equity base than the return shareholders require and values the stock by discounting those excess returns over time.