* Note: Prices are in Million (M) USD.
Description:
Trinity Capital Inc. is a venture capital firm specializing in venture debt for growth-stage companies seeking equipment loans and / or financing. The company is headquartered in Chandler, Arizona.
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 : $20 M
Debt : $1 M
EBITDA : $196 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Asset management
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: 8.37
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 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-213 M
Average Revenue: $124 M
Revenue Converted To Free Cash Flow (%): -171.9%
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): $232 M
Revenue 5 Years Ago (2020-12-31): $24 M
Total Growth over 5 Years: 875.0%
5-Year Revenue CAGR (Historical): 57.7%
Forward 5-Year CAGR (Tapered): 28.8%
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): $69 M
Share Count 5 Years Ago (2021-12-31): $27 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): $2.07
Trailing 12-Month Earnings Per Share (EPS): $2.09
Average Earnings Per Share (EPS): $2.08
Dividend Per Share (DPS): $2
Payout Ratio: 98%
Dividend Yield: 11.70%
⚠️ Caution: Further research is recommended — dividend payout ratio is too high (98%).
Since company Payout Ratio is greater than 50, 1 point 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 6 valid ROE years (max 20).Average ROE: 9.9%
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: $17.44
52-Week Low: $12.66
Threshold Price (15% Above 52-Week Low): $14.56
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: $1,551 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 2% 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 26 points to above Trinity Capital Inc. (TRIN) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (6.08)
× EPS ($2.08) = $12.66.
Last 3 Years Avg PE
6.08, Fair Value PE
15, Industry Based PE
15, Growth Based PE
50, ROE Based PE
9.91, Risk-Free Anchored PE (25% MoS)
16.78. Based on these 6 values, average assigned is
18.79. Value-Trades has assined P/E value
6.08. An average (Current Year EPS + Next Year EPS) earning per share is
$2.0826.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $39.14 (PE 18.79 × EPS $2.08)
Fair value using simple average PE × EPS: $12.66 (PE 6.08 × EPS $2.08)
Lesser of these two: $12.66
So the Final Fair Value is: $12.66
Understanding the Value-Trades P/E Blend (click to expand)
▾
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: $2.08
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 6.51 | $13.56 |
| 3 Yrs Avg-PE | 6.08 | $12.66 |
| Value-Trades Assigned | 6.08 | $12.66 |
Note: Only 3 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.
