The Discounted Cash Flow (DCF) valuation of Stone Harbor Emerging Markets Income Fund (EDF) is 12.47 USD. With the latest stock price at 5.12 USD, the upside of Stone Harbor Emerging Markets Income Fund based on DCF is 143.5%.

Is EDF a buy or a sell?

Based on the latest price of 5.12 USD and our DCF valuation, Stone Harbor Emerging Markets Income Fund (EDF) is a buy. Buying EDF stocks now will result in a potential gain of 143.5%.

	Range	Selected
WACC / Discount Rate	6.5% - 8.2%	7.4%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	10.54 - 15.33	12.47
Upside	105.9% - 199.4%	143.5%

5.12 USD

Stock Price

12.47 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

EDF DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	11-2024	11-2025	11-2026	11-2027	11-2028	11-2029

Revenue	17	18	18	19	19	20
% Growth	57%	5%	2%	4%	2%	2%

Cost of goods sold	(4)	(4)	(4)	(4)	(4)	(5)
% of Revenue	23%	23%	23%	23%	23%	23%

Selling, G&A expenses	(0)	(0)	(0)	(0)	(0)	(0)
% of Revenue	2%	2%	2%	2%	2%	2%

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

Net interest & other expenses	20	21	22	23	23	24
% of Revenue	119%	119%	119%	119%	119%	119%

Tax expense	0	(9)	(10)	(10)	(10)	(10)
Tax rate	0%	27%	27%	27%	27%	27%

Net profit	33	25	26	27	27	28
% Margin	194%	142%	142%	142%	142%	142%