Stock fact sheet · data as of
Invesco High Income Trust II (VLT): fair value, margin of safety and Wheel Score
Financial Services · Asset Management - Income · United States · High Yield Income
Is VLT undervalued?
At 8.81 (close of 16 Oct 2026), VLT trades 36% below the GLS average fair value of 13.79. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Invesco High Income Trust II the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: DCF gives 3.41 while Graham Growth gives 40.74. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files VLT under High Yield Income: a dividend yield above 4%.
Nine valuation models for VLT
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 3.41 | -61% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 13.29 | +51% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 40.74 | +362% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 17.81 | +102% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.53 | -49% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 9.71 | +10% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 10.52 | +19% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.22 | +84% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 7.91 | -10% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -4.40 | -150% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - VLT passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 4.5%, ROE 6.5%, ROA 4.4% - with debt at 0.43 times equity and a free-cash-flow yield of 5.5%.
The dividend yield is high at 12.51% (payout ratio 106%) - a payout above 100% of earnings, which is not covered by profits. 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 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 4.5% |
|---|---|---|---|
| GLS Moat | 2.4 / 10 | ROE | 6.5% |
| Debt / equity | 0.43 | ROA | 4.4% |
| Free-cash-flow yield | 5.5% | Payout ratio | 106% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 39: No options
VLT has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 45k shares a day on a market cap of $57M, with a beta of 0.73 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 36% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 4 / 15 | moat 2.4/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 45k shares/day, $57M cap, beta 0.73 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for VLT in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management - Income
The 12 companies below are the closest to Invesco High Income Trust II by market cap within the Asset Management - Income industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PGZ Principal Real Estate Income Fund | 8.73 | 18.83 | +54% | 39No options | $58M |
| MXE Mexico Equity & Income Fund Inc. | 12.74 | 29.18 | +56% | 39No options | $56M |
| JMM Nuveen Multi-Market Income Fund | 5.61 | 9.40 | +40% | 39No options | $53M |
| NMS Nuveen Minnesota Quality Municipal Income Fund | 10.13 | 29.91 | +66% | 39No options | $65M |
| ICTVX ICON Utilities and Income Fund Investor | 10.59 | 13.16 | +20% | 39No options | $50M |
| SPIN State Street US Equity Premium Income ETF | 33.58 | 23.66 | -42% | 21No options | $48M |
| FMY First Trust Mortgage Income Fund | 11.33 | 22.31 | +49% | 39No options | $48M |
| JPO YieldMax JP Option Income Strategy ETF | 13.45 | 60.88 | +78% | 45Weak | $46M |
| CEV Eaton Vance California Municipal Income Trust | 10.30 | 17.40 | +41% | 39No options | $72M |
| IAE Voya Asia Pacific High Dividend Equity Income Fund | 7.01 | 65.30 | +89% | 35No options | $75M |
| RFM RiverNorth Flexible Municipal Income Fund, Inc. | 12.82 | 24.06 | +47% | 31No options | $78M |
| DTF DTF Tax-Free Income 2028 Term Fund Inc. | 11.44 | 11.56 | +1% | 32No options | $80M |
⚖ Compare VLT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about VLT
Is VLT undervalued right now?
By the GLS models, yes: at 8.81 the stock is 36% below the average fair value of 13.79 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of VLT and what does it mean?
VLT has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for VLT?
13.79 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Invesco High Income Trust II report earnings next?
No upcoming earnings date is recorded for VLT in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does VLT have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on VLT, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.