Is DTF Stock Undervalued?

A comprehensive valuation analysis of Dtf Tax-Free Income 2028 Term Fund Inc (DTF) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

251004552.1% upside potential

Based on our analysis, Dtf Tax-Free Income 2028 Term Fund Inc appears to be potentially undervalued at the current price of $11.45. Our fair value estimate of $28739781.66 suggests upside potential of approximately 251004552.1%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing DTF relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
34.70
High
P/B Ratio
0.94
Low
P/S Ratio
29.17
High
EV/EBITDA
N/A

Understanding the Metrics

  • P/E Ratio: At 34.70x earnings, DTF is trading above the typical market average of 15-20x.
  • P/B Ratio: A P/B of 0.94 means investors pay $0.94 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 29.17 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: EBITDA data not available.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Dtf Tax-Free Income 2028 Term Fund Inc stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$11.45
vs
Fair Value Estimate
$28739781.66
Implied Return+251004552.1%

Our DCF model suggests DTF may be undervalued by approximately 251004552.1%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Dtf Tax-Free Income 2028 Term Fund Inc (DTF) appears to be undervalued at $11.45. With a fair value estimate of $28739781.66, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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