* Note: Prices are in Million (M) USD.
Description:
Newtek Business Services Corp (NEWT) is a leading provider of integrated business solutions specifically designed for small to medium-sized enterprises (SMBs) in the U.S. With a diverse portfolio that includes payment processing, business lending, and cutting-edge technology services, the company enhances operational efficiency and supports growth for its clients. Newtek's focus on exceptional customer service and strategic partnerships positions it as a crucial ally for SMBs navigating competitive challenges. Committed to innovation and long-lasting client relationships, Newtek aims to drive sustainable success in an evolving market landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $403 M
Debt : $2,412 M
EBITDA : $131 M
Net Debt (Debt - Cash): $2,009 M
This criteria used industry in which company operates:
Sector: Financials
Industry: Banks - regional
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 5.57
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-28 M
Average Revenue: $125 M
Revenue Converted To Free Cash Flow (%): -22.1%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $322 M
Revenue 5 Years Ago (2020-12-31): $93 M
Total Growth over 5 Years: 247.0%
5-Year Revenue CAGR (Historical): 28.3%
Forward 5-Year CAGR (Tapered): 14.1%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $26 M
Share Count 5 Years Ago (2021-12-31): $23 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.49
Trailing 12-Month Earnings Per Share (EPS): $2.35
Average Earnings Per Share (EPS): $2.42
Dividend Per Share (DPS): $1
Payout Ratio: 31%
Dividend Yield: 5.86%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 7.3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $13.48
52-Week Low: $8.90
Threshold Price (15% Above 52-Week Low): $10.24
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $378 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 22 points to above Newtek Business Services Corp (NEWT) stock.
Last 9 Years Avg PE
7.37, Fair Value PE
15, Industry Based PE
13, Growth Based PE
15, ROE Based PE
7.29, Risk-Free Anchored PE (25% MoS)
17.36. Based on these 6 values, average assigned is
12.50. Value-Trades has assined P/E value
12.50. An average (Current Year EPS + Next Year EPS) earning per share is
$2.4184.
Fair value using multiple P/Es (blended): $30.24 (PE 12.50 × EPS $2.42)
So the Final Fair Value is: $30.24
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $2.42
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 5.1 | $12.33 |
| 9 Yrs Avg-PE | 7.37 | $17.82 |
| Value-Trades Assigned | 12.5 | $30.23 |
Note: Only 9 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
Financials mode
3.5× Net Debt/EBITDA penalty is disabled; Cash/Debt/EBITDA are shown and counted.
