Eaton Vance Tax-Managed Diversified Equity Income Fund Common Shares of Beneficial Interest (ETY)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this closed-end fund as a portfolio, not an operating company. It owns public equities, emphasizes dividend payers globally, and writes S&P 500 index calls on part of the portfolio to generate cash flow. At the close on 2026-10-13, the shares traded at $14.27, with a $2.3 billion market cap, an 8.34% distribution yield, and beta near 0.99. FairStock’s calculations show P/B of 0.92 and P/E of 5.13. Against that close, its Graham Number is $31.22, implying a 54.29% margin of safety, and ROE is 18.78%. Those are superficially cheap and profitable figures. But I am cautious: ROCE is -0.19%, Piotroski is 0/9, and the FairStock Score is 53/100. The Lynch category is none because only 0 years of filed results are available and 3 are needed. Altman Z-Score is 34.95, but that metric is less meaningful for a fund. No revenue or profit growth figures were provided. The durability of this strategy rests on manager skill, option-premium income, tax management, and distribution sustainability, none proven here by a long filed record. A fund can trade below book and yield a lot, but that may reflect market skepticism about the distribution or the option strategy. I would need more filed history before calling the discount a true bargain.

In plain English: This is a managed fund that owns dividend-paying stocks around the world and sells options to create income. At the close on 2026-10-13, its $14.27 share price looked cheap compared with its stated earnings and accounting value, and it paid out a high 8.34% income. But some financial health signals are weak and there is almost no official financial history, so the picture is mixed.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer