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Eaton Vance Limited Duration Income Fund (EVV)

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

Valuation Snapshot

Stable Growth$17.83 - $25.66$21.65
Multi-Stage$30.34 - $33.23$31.76
Blended Fair Value$26.71
Current Price$10.15
Upside163.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-1.64%-2.73%0.940.941.201.191.201.020.820.971.111.23
YoY Growth---0.30%-21.78%0.57%-0.52%17.99%24.39%-15.47%-13.29%-9.05%-0.71%
Dividend Yield--9.38%9.68%12.82%11.55%9.05%9.02%6.48%7.68%7.91%9.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)293.58
(-) Cash Dividends Paid (M)189.93
(=) Cash Retained (M)103.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)58.7236.7022.02
Cash Retained (M)103.65103.65103.65
(-) Cash Required (M)-58.72-36.70-22.02
(=) Excess Retained (M)44.9366.9581.63
(/) Shares Outstanding (M)116.20116.20116.20
(=) Excess Retained per Share0.390.580.70
LTM Dividend per Share1.631.631.63
(+) Excess Retained per Share0.390.580.70
(=) Adjusted Dividend2.022.212.34
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.83$21.65$25.66
Upside / Downside75.69%113.33%152.82%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)293.58290.64287.74284.86282.01279.19287.57
Payout Ratio64.70%69.76%74.82%79.88%84.94%90.00%92.50%
Projected Dividends (M)189.93202.74215.28227.54239.54251.27266.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)183.94185.82187.70
Year 2 PV (M)177.20180.84184.51
Year 3 PV (M)169.93175.19180.55
Year 4 PV (M)162.30169.03175.96
Year 5 PV (M)154.47162.51170.88
PV of Terminal Value (M)2,677.582,817.012,962.18
Equity Value (M)3,525.433,690.393,861.79
Shares Outstanding (M)116.20116.20116.20
Fair Value$30.34$31.76$33.23
Upside / Downside198.90%212.89%227.42%

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