Is NIE undervalued? Our fair value estimate
Virtus Equity & Convertible Income Fund · Financial Services · NYQ
How we got here
The estimate is computed from NIE's reported fundamentals, with a growth assumption that is deliberately capped: small changes to an uncapped growth or terminal assumption can justify any price, and a number that can justify anything means nothing. These are the inputs the model holds for NIE today; the exact method, and where it goes wrong, is on the methodology page.
The starting point is earnings power: what the business earns per share, and what the market currently pays for each unit of it.
A volatility measure against the wider market. A jumpier share earns a larger discount for risk, which lowers the estimate.
Common questions
Is Virtus Equity & Convertible Income Fund (NIE) undervalued?
On our model, NIE at USD26.32 trades 33% below our fair value estimate of USD35.11, so it screens as undervalued today. That is one model's answer, not a recommendation: a fair value estimate is an argument about the future, and the market is frequently right about why something is cheap.
What is the fair value of NIE?
Our current fair value estimate for Virtus Equity & Convertible Income Fund is USD35.11 per share. The estimate moves as prices and fundamentals move.
How is NIE's fair value calculated?
From Virtus Equity & Convertible Income Fund's reported fundamentals: earnings power, a deliberately capped growth assumption, and a discount for balance sheet and volatility risk. The full method, including its known weaknesses, is published on our methodology page, and the interactive Valuation Lab lets you change every assumption and watch the value move.
Disagree with an assumption? Good. The Valuation Lab on the NIE app page puts every input of this model on a slider, including a reverse DCF that shows the growth the market is currently pricing in.
A fair value estimate is a model output computed from company filings and market data, refreshed daily; quotes are delayed. It is educational information, not financial advice and not a recommendation to buy or sell anything. Read the full disclaimer.