MeritValue

WhiteHorse Finance, Inc.

WHFdata completeness 75%6 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'pretaxIncome'

The thesis, from the filings

WhiteHorse Finance, Inc. earns about 6% on equity, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $7.01 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$30.1M1$15.7M2$20.4M3$10.9M3$14.3M3
Operating cash flow−$90.2M4$72M5$90.4M6$78.8M6$77.3M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt$476M7$440.4M8$386.4M9$353.1M10$323.8M10
Cash & equivalents$12.2M11$9.51M12$10.7M13$12.4M13$7.03M13
Diluted shares21.2M23.2M23.2M23.2M23.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$112.1
your share of equity
Profit it earned you last year
$6.19
Free cash flow it threw off
—
Debt you’d be carrying
$139.73

10 shares is a claim on $112.1 of net worth that earned you $6.19 last year, against $139.73 of debt.

iii. Is this a good business?
Moat signal · return on equity
6% avg · 5y
FY21 9%FY22 5%FY23 6%FY24 4%FY25 6%

It earned an average 6% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 32% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$7.01
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$15.7M
  • growthAssumed0.0%
Graham Number
$12.51
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-002482 (NetIncomeLoss)
  2. 10-K/A · period ending 2022-12-31 · accession 0001410578-25-001398 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-024735 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-002482 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K/A · period ending 2022-12-31 · accession 0001410578-25-001398 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-024735 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-23-002791 (LongTermDebt)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-24-002482 (LongTermDebt)
  9. 10-K/A · period ending 2023-12-31 · accession 0001410578-25-001398 (LongTermDebt)
  10. 10-K · period ending 2024-12-31 · accession 0001104659-26-024735 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0001558370-24-002482 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K/A · period ending 2022-12-31 · accession 0001410578-25-001398 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0001104659-26-024735 (CashAndCashEquivalentsAtCarryingValue)