Invesco Municipal Opportunity Trust

UNDERVALUEDVMO · NYSE · Financial Services
VMO·NYSE·Financial Services
UNDERVALUED
Invesco Municipal Opportunity Trust
18.4%upside
MARKET PRICE
$9.70
FAIR PRICE
$11.48
MARGIN
$1.79
UNDERVALUEDFAIROVERVALUED
P/E RATIO
27.4x
DIV. YIELD
8.46%
ROE
N/A
MARKET CAP
$648M
FPI
fairpriceindex.com

FAIR PRICE VALUATION

18.4%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$9.70

FAIR PRICE

$11.48

MARGIN

$1.79

UNDERVALUEDFAIROVERVALUED

P/E Ratio

27.4x

What is P/E? →

Div. Yield

8.46%

ROE

N/A

Market Cap

$648M

Small-cap

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FPI RATING

5.2/ 10

Strong profitability and low debt levels, but volatile earnings pattern and limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$9.18CONSERVATIVE ENTRY
$11.48FAIR PRICE
$9.70MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$9.18

Fair price × 0.80

DISTANCE

5.3%

Price to entry level

At the current price of $9.70, VMO trades 5.3% above the conservative entry level of $9.18. This entry level represents a 20% margin of safety below the calculated fair price of $11.48 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate VMO's fair price

Invesco Municipal Opportunity Trust's fair price of $11.48 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $9.70, VMO trades 18.4% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting VMO's risk profile.

RELATIVE · 30%

Comparing VMO's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for VMO, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate VMO's fair value with your own inputs.

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FAQ

What is the fair price of VMO?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for Invesco Municipal Opportunity Trust is $11.48. At the current market price of $9.70, VMO trades 18.4% below its calculated fair value.

Is VMO overvalued or undervalued?+

Invesco Municipal Opportunity Trust is currently undervalued based on our valuation model. The stock trades at $9.70, which is 18.4% below the fair price of $11.48. The P/E ratio of 27.4x is a key metric in the valuation.

What is the margin of safety for VMO?+

With a 20% margin of safety applied to the fair price of $11.48, the conservative entry level for VMO is $9.18. At the current market price of $9.70, the stock trades 5.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is VMO's fair price updated?+

We update fair price calculations for VMO daily after market close. The current fair price of $11.48 incorporates the latest market data and sector multiples.

What factors affect VMO's fair price calculation?+

VMO's fair price of $11.48 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 27.4x, and dividend yield of 8.46%.

Is VMO a good buy right now?+

At $9.70, VMO trades 18.4% below our fair value estimate of $11.48. The stock is currently undervalued. Fair Price Index provides valuation data — always do your own research before investing.

Does VMO pay dividends?+

VMO has a dividend yield of 8.46%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.