The Discounted Cash Flow (DCF) valuation of BlackRock Investment Quality Municipal Trust Inc (BKN) is 4.30 USD. With the latest stock price at 10.98 USD, the upside of BlackRock Investment Quality Municipal Trust Inc based on DCF is -60.9%.

Is BKN a buy or a sell?

Based on the latest price of 10.98 USD and our DCF valuation, BlackRock Investment Quality Municipal Trust Inc (BKN) is a sell. Selling BKN stocks now will result in a potential gain of 60.9%.

	Range	Selected
WACC / Discount Rate	8.3% - 10.4%	9.3%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	3.43 - 5.54	4.30
Upside	-68.8% - -49.6%	-60.9%

10.98 USD

Stock Price

4.30 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

BKN DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	07-2023	07-2024	07-2025	07-2026	07-2027	07-2028

Revenue	17	15	16	17	17	17
% Growth	1%	-10%	7%	3%	2%	2%

Cost of goods sold	(7)	(6)	(7)	(7)	(7)	(7)
% of Revenue	41%	41%	41%	41%	41%	41%

Selling, G&A expenses	(1)	(1)	(1)	(1)	(1)	(1)
% of Revenue	4%	4%	4%	4%	4%	4%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(11)	(10)	(10)	(11)	(11)	(11)
% of Revenue	64%	64%	64%	64%	64%	64%

Tax expense	0	0	0	0	0	0
Tax rate	0%	27%	27%	27%	27%	27%

Net profit	(2)	(1)	(1)	(1)	(1)	(1)
% Margin	-10%	-7%	-7%	-7%	-7%	-7%