Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI): fair value, margin of safety and Wheel Score

Is IGI undervalued?

Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) closed at 15.47 on 5 Nov 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 26.70, which puts the price 42% below it. 4 of the 7 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

There is a wide gap between DCF (0.7749) and Graham Growth (64.96). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

Ranked against every other company we cover, IGI is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 68, growth score 34, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for IGI

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Western Asset Investment Grade Defined Opportunity Trust Inc. scores only 4 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 3.4/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.

Returns on capital are moderate - ROIC 5.6%, ROE 5.6%, ROA 5.6% - with debt at 0.00 times equity and negative free cash flow.

The dividend yield is high at 5.51% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 6/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 29: No options

No options are listed on Western Asset Investment Grade Defined Opportunity Trust Inc. in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 29, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 23k shares a day on a market cap of $93M, with a beta of 0.53 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for IGI in the nightly calendar. The shares go ex-dividend on 20 Nov 2026 (0.0710 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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