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Putnam Municipal Opportunities Trust (PMO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$6.82 - $9.81$8.28
Multi-Stage$10.59 - $11.66$11.11
Blended Fair Value$9.70
Current Price$9.94
Upside-2.46%
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 Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$6.82$8.28$9.81
Upside / Downside-31.43%-16.73%-1.31%

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 Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4.814.864.91
Year 2 PV (M)8.638.818.99
Year 3 PV (M)11.6211.9812.35
Year 4 PV (M)13.9214.5015.09
Year 5 PV (M)15.6316.4417.29
PV of Terminal Value (M)271.27285.40300.11
Equity Value (M)325.88341.98358.73
Shares Outstanding (M)30.7730.7730.77
Fair Value$10.59$11.11$11.66
Upside / Downside6.55%11.82%17.29%

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