Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Putnam Municipal Opportunities Trust (PMO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$6.41 - $9.11$7.74
Multi-Stage$9.40 - $10.34$9.86
Blended Fair Value$8.80
Current Price$9.94
Upside-11.46%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.700.710.850.000.740.780.000.000.00
YoY Growth---100.00%-0.39%-17.24%0.00%-100.00%-5.65%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%7.24%6.98%7.99%0.00%6.35%6.40%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)29.69
(-) Cash Dividends Paid (M)0.01
(=) Cash Retained (M)29.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.943.712.23
Cash Retained (M)29.6729.6729.67
(-) Cash Required (M)-5.94-3.71-2.23
(=) Excess Retained (M)23.7425.9627.45
(/) Shares Outstanding (M)30.7730.7730.77
(=) Excess Retained per Share0.770.840.89
LTM Dividend per Share0.000.000.00
(+) Excess Retained per Share0.770.840.89
(=) Adjusted Dividend0.770.840.89
WACC / Discount Rate9.80%9.80%9.80%
Growth Rate-2.00%-1.00%0.00%
Fair Value$6.41$7.74$9.11
Upside / Downside-35.49%-22.12%-8.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)29.6929.3929.1028.8128.5228.2329.08
Payout Ratio0.05%18.04%36.03%54.02%72.01%90.00%92.50%
Projected Dividends (M)0.015.3010.4815.5620.5425.4126.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.80%9.80%9.80%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4.784.834.88
Year 2 PV (M)8.528.708.87
Year 3 PV (M)11.4011.7612.12
Year 4 PV (M)13.5714.1314.71
Year 5 PV (M)15.1415.9216.74
PV of Terminal Value (M)235.77248.04260.83
Equity Value (M)289.17303.38318.14
Shares Outstanding (M)30.7730.7730.77
Fair Value$9.40$9.86$10.34
Upside / Downside-5.45%-0.81%4.02%

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