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abrdn National Municipal Income Fund (VFL)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$19.19 - $27.62$23.31
Multi-Stage$31.33 - $34.39$32.83
Blended Fair Value$28.07
Current Price$11.17
Upside151.29%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320232022202120202019201820172016
DPS0.00%0.00%0.490.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)33.36
(-) Cash Dividends Paid (M)11.40
(=) Cash Retained (M)21.96
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.674.172.50
Cash Retained (M)21.9621.9621.96
(-) Cash Required (M)-6.67-4.17-2.50
(=) Excess Retained (M)15.2917.7919.46
(/) Shares Outstanding (M)12.2812.2812.28
(=) Excess Retained per Share1.241.451.58
LTM Dividend per Share0.930.930.93
(+) Excess Retained per Share1.241.451.58
(=) Adjusted Dividend2.172.382.51
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$19.19$23.31$27.62
Upside / Downside71.83%108.66%147.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)33.3633.0232.6932.3732.0431.7232.68
Payout Ratio34.18%45.34%56.51%67.67%78.84%90.00%92.50%
Projected Dividends (M)11.4014.9718.4721.9025.2628.5530.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)13.5913.7313.86
Year 2 PV (M)15.2115.5215.84
Year 3 PV (M)16.3616.8717.38
Year 4 PV (M)17.1217.8318.56
Year 5 PV (M)17.5618.4719.43
PV of Terminal Value (M)304.82320.69337.22
Equity Value (M)384.66403.11422.30
Shares Outstanding (M)12.2812.2812.28
Fair Value$31.33$32.83$34.39
Upside / Downside180.48%193.93%207.92%

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