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Virginia Tax Free Bond Fund (PRVAX)

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

Valuation Snapshot

Stable Growth$0.12 - $0.16$0.14
Multi-Stage$0.25 - $0.27$0.26
Blended Fair Value$0.20
Current Price$10.27
Upside-98.07%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS-8.15%0.00%0.030.030.030.040.040.050.060.060.060.06
YoY Growth--13.25%-15.84%-12.51%-6.35%-16.30%-16.66%0.00%-1.21%0.55%0.00%
Dividend Yield--0.29%0.24%0.27%0.32%0.35%0.42%0.50%0.49%0.49%0.52%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3.08
(-) Cash Dividends Paid (M)2.74
(=) Cash Retained (M)0.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.620.380.23
Cash Retained (M)0.340.340.34
(-) Cash Required (M)-0.62-0.38-0.23
(=) Excess Retained (M)-0.28-0.050.11
(/) Shares Outstanding (M)119.53119.53119.53
(=) Excess Retained per Share0.000.000.00
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.000.000.00
(=) Adjusted Dividend0.020.020.02
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-7.42%-6.42%-5.42%
Fair Value$0.12$0.14$0.16
Upside / Downside-98.88%-98.68%-98.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.082.882.702.522.362.212.28
Payout Ratio89.04%89.23%89.43%89.62%89.81%90.00%92.50%
Projected Dividends (M)2.742.572.412.262.121.992.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-7.42%-6.42%-5.42%
Year 1 PV (M)2.332.362.38
Year 2 PV (M)1.982.032.07
Year 3 PV (M)1.691.741.80
Year 4 PV (M)1.431.501.56
Year 5 PV (M)1.221.291.36
PV of Terminal Value (M)21.1722.3423.56
Equity Value (M)29.8231.2432.72
Shares Outstanding (M)119.53119.53119.53
Fair Value$0.25$0.26$0.27
Upside / Downside-97.57%-97.45%-97.33%

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