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Invesco Value Municipal Income Trust (IIM)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$6.75 - $9.12$7.96
Multi-Stage$13.84 - $15.21$14.51
Blended Fair Value$11.24
Current Price$12.49
Upside-10.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-4.78%-5.13%0.530.540.650.760.710.670.720.740.780.84
YoY Growth---1.88%-17.96%-14.18%6.94%5.96%-6.45%-3.24%-5.16%-6.37%-6.14%
Dividend Yield--4.21%4.55%5.36%5.03%4.55%4.34%5.00%5.12%5.30%4.88%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)67.74
(-) Cash Dividends Paid (M)43.58
(=) Cash Retained (M)24.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.558.475.08
Cash Retained (M)24.1724.1724.17
(-) Cash Required (M)-13.55-8.47-5.08
(=) Excess Retained (M)10.6215.7019.09
(/) Shares Outstanding (M)47.2047.2047.20
(=) Excess Retained per Share0.220.330.40
LTM Dividend per Share0.920.920.92
(+) Excess Retained per Share0.220.330.40
(=) Adjusted Dividend1.151.261.33
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-6.78%-5.78%-4.78%
Fair Value$6.75$7.96$9.12
Upside / Downside-45.96%-36.24%-26.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)67.7463.8360.1456.6753.3950.3151.82
Payout Ratio64.33%69.46%74.60%79.73%84.87%90.00%92.50%
Projected Dividends (M)43.5844.3444.8645.1845.3145.2847.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-6.78%-5.78%-4.78%
Year 1 PV (M)40.2240.6541.08
Year 2 PV (M)36.9137.7138.51
Year 3 PV (M)33.7134.8135.93
Year 4 PV (M)30.6732.0133.39
Year 5 PV (M)27.7929.3230.91
PV of Terminal Value (M)483.95510.47538.14
Equity Value (M)653.25684.95717.95
Shares Outstanding (M)47.2047.2047.20
Fair Value$13.84$14.51$15.21
Upside / Downside10.81%16.18%21.78%

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