As of June 20, 2025, Putnam Master Intermediate Income Trust has a Discounted Cash Flow (DCF) derived fair value of $6.76 per share. With the current market price at $3.32, this represents a potential upside of 103.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $6.10 |
| DCF Fair Value (10-year) | $6.76 |
| Potential Upside (5-year) | 83.8% |
| Potential Upside (10-year) | 103.5% |
| Discount Rate (WACC) | 6.4% - 8.3% |
Revenue is projected to grow from $11 million in 09-2024 to $15 million by 09-2034, representing a compound annual growth rate of approximately 3.2%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 09-2024 | 11 | 15% |
| 09-2025 | 12 | 5% |
| 09-2026 | 12 | 2% |
| 09-2027 | 12 | 2% |
| 09-2028 | 12 | 3% |
| 09-2029 | 13 | 2% |
| 09-2030 | 13 | 2% |
| 09-2031 | 13 | 4% |
| 09-2032 | 14 | 2% |
| 09-2033 | 14 | 5% |
| 09-2034 | 15 | 2% |
Net profit margin is expected to improve from 200% in 09-2024 to 146% by 09-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 09-2024 | 22 | 200% |
| 09-2025 | 17 | 146% |
| 09-2026 | 17 | 146% |
| 09-2027 | 18 | 146% |
| 09-2028 | 18 | 146% |
| 09-2029 | 18 | 146% |
| 09-2030 | 19 | 146% |
| 09-2031 | 20 | 146% |
| 09-2032 | 20 | 146% |
| 09-2033 | 21 | 146% |
| 09-2034 | 21 | 146% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 09-2025 | 0 |
| 09-2026 | 0 |
| 09-2027 | 0 |
| 09-2028 | 0 |
| 09-2029 | 0 |
| 09-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 793 |
| Days Inventory | 0 |
| Days Payables | 252,535 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 23 | 6 | 0 | 15 | 2 |
| 2026 | 24 | 6 | 0 | (11) | 28 |
| 2027 | 24 | 7 | 0 | (9) | 26 |
| 2028 | 25 | 7 | 0 | 5 | 13 |
| 2029 | 25 | 7 | 0 | (5) | 23 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 6.10 | 83.8% |
| 10-Year DCF (Growth) | 6.76 | 103.5% |
| 5-Year DCF (EBITDA) | 9.81 | 195.4% |
| 10-Year DCF (EBITDA) | 9.70 | 192.1% |
Is Putnam Master Intermediate Income Trust (PIM) a buy or a sell? Putnam Master Intermediate Income Trust is definitely a buy. Based on our DCF analysis, Putnam Master Intermediate Income Trust (PIM) appears to be significantly undervalued with upside potential of 103.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $3.32.