Discounted Cash Flow (DCF) Analysis Levered

BlackRock Municipal Income Trust (BFK)

$9.765

+0.07 (+0.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.60 | 9.765 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	23	40.31	-26.66	113.44	-84.62	82.72	-80.85	79.03	-77.25	75.51
Revenue (%)
Operating Cash Flow	33.75	60.18	12.61	26.35	49.73	35.27	-34.48	33.70	-32.94	32.20
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	35.27	-34.48	33.70	-32.94	32.20

Weighted Average Cost Of Capital

Share price	$ 9.765
Beta	0.501
Diluted Shares Outstanding	43.30
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	53,195.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.065
Total Debt	0.01
Total Equity	422.79
Total Capital	422.80
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	23	40.31	-26.66	113.44	-84.62	82.72	-80.85	79.03	-77.25	75.51
Operating Cash Flow	33.75	60.18	12.61	26.35	49.73	35.27	-34.48	33.70	-32.94	32.20
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	35.27	-34.48	33.70	-32.94	32.20
WACC
PV LFCF						32.98	-30.14	27.55	-25.18	23.01
SUM PV LFCF										28.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.95
Free cash flow (t + 1)	32.85
Terminal Value	663.54
Present Value of Terminal Value	474.20

Intrinsic Value

Enterprise Value	502.42
Net Debt	0.01
Equity Value	502.42
Shares Outstanding	43.30
Equity Value Per Share	11.60