BNY Mellon Strategic Municipals Inc (LEO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of BNY Mellon Strategic Municipals Inc stock $5.78, price $6.10, that is 5.2% below the price, quality 57 out of 100. Rating: fairly valued. Calculated from audited financials with 2 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.
How to read this chart
60‑month range $4.40 – $7.52 · fair‑value band $4.33 – $7.22 · the $6.10 price screens above the $5.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 9, 2026.
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BNY Mellon Strategic Municipals, Inc. is a closed ended fixed income mutual fund launched and managed by BNY Mellon Investment Adviser, Inc. It invests in the fixed income markets of the United States.
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The fund primarily invests in investment grade municipal bonds, the income from which is exempt from federal income tax. It employs fundamental analysis to create its portfolio.
The fund was formerly known as Dreyfus Strategic Municipals, Inc. BNY Mellon Strategic Municipals, Inc. was formed on September 23, 1987 and is domiciled in the United States.
Stock analysis
BNY Mellon Strategic Municipals Inc (LEO) currently trades at $6.10, while our model-based Fair Value estimate is $5.78, so the stock looks roughly fairly valued today (gap 5.5%).
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Valuation
How firm this estimate is: it rests on 2 models at a data quality of 96/100, which puts the data coverage at low.
Scenario range: $4.33 (bear) to $7.22 (bull), the price of $6.10 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
BNY Mellon Strategic Municipals Inc reported revenue of −$5.2M in FY2025 versus $47.3M in FY2021. Reported net income was −$13.1M in FY2025.
Key figures
Market cap $380M Small · P/E ratio 30.5 · P/S ratio 12.6 · EPS (TTM) $0.2000 · Dividend yield 4.5% · Net margin 42.0% · Return on equity 3.0% · Return on assets (EBIT) −0.2% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 13% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −5%, LEO screens cheaper than that median.
Fair Value models
Bear$4.33Fair Value $5.78Bull$7.22
Price $6.10 · Downside -5.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
BuySaba Capital Management, L.P.10% owner5× since Oct 16, 2026: 469,242 shares, avg. $5.67$2.7MOct 26, 2026
BuyBANK OF AMERICA CORP /DE/10% owner183 shares at $5.68$1,039Oct 20, 2026
SaleBANK OF AMERICA CORP /DE/10% owner183 shares at $5.71$1,045Oct 20, 2026
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+1,324.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.7%
Revenue growth 35 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.7%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
100.1% (2019) → 100.1% (2024)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+26.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +23.5% a year for the price.
AI conclusion: The fund's core strength is generating tax-exempt income from municipal bonds, yet sustained net losses and negative returns remain its clearest weakness with no visible moat.
Main risk: Sustained net losses and negative returns threaten the fund's capacity to maintain stable tax-exempt distributions from its municipal-bond portfolio.
Saba Capital Management has stepped up its purchases of BNY Mellon Strategic Municipals shares throughout October. This closed-end fund generates tax-exempt income from municipal bonds while trading at a discount to its net asset value. Will the activist investor's growing stake prompt adjustments to leverage or portfolio strategy, or will municipal market dynamics continue to dominate performance?
Compare BNY Mellon Strategic Municipals Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Asset Management · 587 stocks
Beats the industry median on 4/13 measures
Overall it trails its industry peers.
Valuation
Quality Score57 · Below median
Fair Value upside−5.2% · Below median
Profitability
Return on equity (12 months)3.0% · Below median
Return on assets−2.0% · Bottom 25%
Net margin (12 months)42.0% · Above median
Operating margin (12 months)87.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)1.0% · Below median
Dividend yield (12 months)4.5% · Above median
Balance sheet
Debt / equity0.46× · Above median
Valuation Multiplesvs Asset Management median · lower = cheaper
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Is BNY Mellon Strategic Municipals Inc (LEO) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $5.78 versus a price of $6.10, about 5% lower (fairly valued).
What is the fair value of LEO?
Our model-based fair value for BNY Mellon Strategic Municipals Inc is $5.78 (as of Nov 9, 2026), built from audited fundamentals. The current price: $6.10.
What is the quality score of LEO?
BNY Mellon Strategic Municipals Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for BNY Mellon Strategic Municipals Inc (LEO)?
Our model-based price target is the fair value of $5.78 (as of Nov 9, 2026) from 2 valuation models. Cautious scenario $4.33, optimistic scenario $7.22. It is a calculation from audited fundamentals, not an analyst target.
What is the BNY Mellon Strategic Municipals Inc stock forecast for 2026?
Our models put fair value at $5.78, about 5% lower versus a price of $6.10 (fairly valued). Cautious scenario $4.33, optimistic scenario $7.22. The calculation is refreshed regularly with new filings.
What is the revenue of BNY Mellon Strategic Municipals Inc (LEO)?
BNY Mellon Strategic Municipals Inc reported trailing-twelve-month revenue of about $30.1M (latest available figure, as of Nov 9, 2026).
Does BNY Mellon Strategic Municipals Inc pay a dividend?
BNY Mellon Strategic Municipals Inc currently shows a dividend yield of 4.49% relative to its recent price (as of Nov 9, 2026).
How much is the dividend of BNY Mellon Strategic Municipals Inc (LEO) and when is the ex-dividend date?
BNY Mellon Strategic Municipals Inc pays a dividend of $0.274 per share a year, a dividend yield of 4.5%. The next ex-dividend date is Nov 13, 2026. A dividend has been paid every year since at least 1987. The payout ratio is 137% of earnings. Free cash flow covers the dividend 0.74 times. Our assessment: Pays more than it earns. The company pays out more in dividends than it earns, and free cash flow clearly does not cover the dividend either. It may need to be cut unless profits recover.
What growth is priced into BNY Mellon Strategic Municipals Inc (LEO)?
For today's price to be fair in a discounted-cash-flow model, BNY Mellon Strategic Municipals Inc would have to grow free cash flow by +26.5 % per year for five years (discount rate 10.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.7 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of LEO use?
Our models discount BNY Mellon Strategic Municipals Inc at 10.2 %: a base by market capitalisation (small), damped by beta 0.63, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For BNY Mellon Strategic Municipals Inc that is +26.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.2 %) and the same formula as our fair value.
How much growth has BNY Mellon Strategic Municipals Inc (LEO) delivered so far?
Over the past 5 years revenue at BNY Mellon Strategic Municipals Inc grew +6.7 % a year. The price currently implies free-cash-flow growth of +26.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of BNY Mellon Strategic Municipals Inc (LEO) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into BNY Mellon Strategic Municipals Inc (+26.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of BNY Mellon Strategic Municipals Inc (LEO)?
The free-cash-flow yield on the price is 3.33 %: that much free cash flow BNY Mellon Strategic Municipals Inc produces per unit of market value. When it exceeds the discount rate of our models (10.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of BNY Mellon Strategic Municipals Inc (LEO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For BNY Mellon Strategic Municipals Inc it is $5.78 per share (as of Nov 9, 2026), against a price of $6.10. It is the blended result of 2 valuation models in 2 families (Multiples, Asset-Based).
Is BNY Mellon Strategic Municipals Inc stock overvalued or undervalued in 2026?
As of Nov 9, 2026, LEO trades above its calculated fair value: price $6.10, fair value $5.78, a gap of about −5% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LEO?
No. The price is what the market pays today ($6.10); the fair value is what the company's own numbers justify ($5.78). For BNY Mellon Strategic Municipals Inc the two are $0.3200 per share apart. That gap is exactly why we show both numbers side by side.
How much is BNY Mellon Strategic Municipals Inc worth?
The market values BNY Mellon Strategic Municipals Inc at about $380M (market capitalisation, as of Nov 9, 2026). Per share that is $6.10; our models calculate a fair value of $5.78 per share.
What do the bullish and bearish scenarios say about LEO?
Our models span a range for BNY Mellon Strategic Municipals Inc: cautious scenario $4.33, base $5.78, optimistic $7.22 per share (as of Nov 9, 2026, price $6.10). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LEO?
BNY Mellon Strategic Municipals Inc trades at a price-to-earnings ratio of 30.5 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $5.78 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2016 to 2024), reported earnings: 39.8. Other multiples: P/B 0.9, P/S 12.6.
How solid is the balance sheet of BNY Mellon Strategic Municipals Inc (LEO)?
Balance-sheet figures for BNY Mellon Strategic Municipals Inc (as of Nov 9, 2026): return on equity 3.0%, debt of 0.46 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is LEO from its 52-week high?
BNY Mellon Strategic Municipals Inc trades at $6.10, about 4% below its 52-week high of $6.38 and 13% above the low of $5.41 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $5.78 is for.
Which stocks are comparable to BNY Mellon Strategic Municipals Inc?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is BNY Mellon Strategic Municipals Inc stock attractive at the current price?
The data as of Nov 9, 2026: price $6.10, calculated fair value $5.78 (−5%), Quality Score 57/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LEO calculated?
We run BNY Mellon Strategic Municipals Inc through 2 models from 2 families: Multiples, Asset-Based. Every model gets the same audited fundamentals; the fair value of $5.78 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. BNY Mellon Strategic Municipals Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of BNY Mellon Strategic Municipals Inc (LEO)?
The closing price on Nov 6, 2026 was $6.10. Our model-based fair value is $5.78, about 5% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with BNY Mellon Strategic Municipals Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of BNY Mellon Strategic Municipals Inc
How large is the market capitalisation of BNY Mellon Strategic Municipals Inc (LEO)?
The market capitalisation of BNY Mellon Strategic Municipals Inc is $380M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of BNY Mellon Strategic Municipals Inc (LEO)?
The price-to-sales ratio of BNY Mellon Strategic Municipals Inc is 12.6 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of BNY Mellon Strategic Municipals Inc (LEO)?
Earnings per share at BNY Mellon Strategic Municipals Inc are $0.2000 (price ÷ EPS = P/E 30.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of BNY Mellon Strategic Municipals Inc (LEO)?
The dividend yield of BNY Mellon Strategic Municipals Inc is 4.5% (payout 137%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of BNY Mellon Strategic Municipals Inc (LEO)?
The net margin of BNY Mellon Strategic Municipals Inc is 42.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of BNY Mellon Strategic Municipals Inc (LEO)?
The return on equity (ROE) of BNY Mellon Strategic Municipals Inc is 3.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of BNY Mellon Strategic Municipals Inc (LEO)?
On an EBIT basis the return on assets of BNY Mellon Strategic Municipals Inc is −0.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of BNY Mellon Strategic Municipals Inc (LEO)?
The operating margin of BNY Mellon Strategic Municipals Inc is 87.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at BNY Mellon Strategic Municipals Inc (LEO)?
Revenue at BNY Mellon Strategic Municipals Inc is growing +1.0% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at BNY Mellon Strategic Municipals Inc (LEO)?
Earnings per share at BNY Mellon Strategic Municipals Inc are growing −67.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does BNY Mellon Strategic Municipals Inc (LEO) carry?
The net debt of BNY Mellon Strategic Municipals Inc is $139M (fiscal year 2025, ≈ 11.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 9, 2026