First Trust High Yield Opportunities 2027 Term Fund
First Trust High Yield Opportunities 2027 Term Fund is a diversified closed-end fund that seeks current income by investing primarily in below-investment-grade high yield debt securities and senior secured floating-rate loans. First Trust High Yield Opportunities 2027 Term Fund focuses on corporate credit exposure across U.S. and non-U.S. issuers, with holdings that can include corporate bonds and leveraged loans from a range of industries. The fund is structured as a term fund, meaning it is designed to operate for a defined period and then liquidate and distribute its net assets to shareholders on or about August 1, 2027. It is used by investors seeking access to actively managed high yield fixed income markets through a pooled vehicle with regular monthly distributions.
$12.87
+$0.11 (+0.86%)
EOD Oct 16, 2026
Revenue declined 43.5% YoY. The question is whether this is cyclical or a structural shift.
Even for strong businesses, today's 19x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
18.6x earnings, 6.5x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$26M
▼ -43.5% YoY
Net Income (TTM)
$25M
▼ -44.3% YoY
Op. Margin
—
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
$73M
▲ +141.5% YoY
Op. Cash Flow (TTM)
$73M
▲ +141.5% YoY
Net Debt
N/A
Cash & Equiv.
N/A
3Y CAGR: -29.9%
Continue Research
Is First Trust High Yield Opportunities 2027 Term Fund (FTHY) overvalued?
At a P/E of 18.6 and a price-to-free-cash-flow of 6.5, First Trust High Yield Opportunities 2027 Term Fund (FTHY) trades below a two-stage DCF intrinsic value of about $30.68 per share, so at $12.87 the stock looks undervalued (138.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, First Trust High Yield Opportunities 2027 Term Fund scores 30/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 8.7%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is First Trust High Yield Opportunities 2027 Term Fund's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $30.68 per share for FTHY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $23.01. At today's $12.87, that puts the stock about 138.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is First Trust High Yield Opportunities 2027 Term Fund a high-quality business?+
First Trust High Yield Opportunities 2027 Term Fund scores 30 out of 100 on Intrinsiqq's quality score, a weighted blend of 4 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does First Trust High Yield Opportunities 2027 Term Fund (FTHY) pay a dividend, and how much?+
Yes, First Trust High Yield Opportunities 2027 Term Fund pays a regular dividend of about $1.13 per share per year (typically in quarterly installments), a yield of roughly 8.7% at the current price. That is a payout ratio of about 162.9% of earnings, so the dividend is stretched at this level. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For FTHY's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is First Trust High Yield Opportunities 2027 Term Fund a good stock to buy right now?+
That depends on valuation and quality together, not either alone. FTHY currently trades below its estimated intrinsic value and scores 30/100 on quality (lower-quality). It also yields about 8.7%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.