Templeton Dragon Fund Inc. Common Stock (TDF)
FairStock Score: 56/100 — STEADY
Key Financials
| Current Price | $9 |
| Market Cap | $284M |
| P/E Ratio | 5.81 |
| ROE | 12.77% |
| Dividend Yield | 6.67% |
| Sector | Financial Services |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a value investor, I start with what I know. Templeton Dragon Fund is a closed-end equity fund focused on China, managed by Templeton Asset Management and launched by Franklin Resources. As of the 2026-10-13 close, the price was $9.61, the market cap $284.3M, and FairStock's calculations show a P/E of 6.20, P/B of 0.76, and a 6.24% dividend yield. The Graham Number is $21.07, implying a 54.39% margin of safety, and the beta is 0.47. Those are classic Graham signals: the market is pricing this fund at a discount to its accounting value and earnings. The Altman Z-Score of 39.47 also suggests little balance-sheet distress in the data. However, quality is not just cheapness. ROE is 12.77%, but ROCE is only 0.49%, and the Piotroski F-Score is 1/9—weak. No revenue or profit growth figures are available, and the Lynch category is none because only 0 years of filed results exist. For a fund, I want to see net asset value, distribution coverage, and a durable manager process; the data does not give me those. The China equity mandate adds policy and market risk, and closed-end fund discounts can persist for years. FairStock Score 56/100 sounds middling. At $9.61, I would call it statistically cheap, maybe deeply so versus the Graham Number, but I need more evidence that the discount is not a value trap. Price is near the 52-week low of $9.35, below the high of $12.20. I would watch net asset value, discount, and distributions before trusting the yield.
In plain English: Templeton Dragon Fund is a closed-end fund that invests in Chinese stocks, mainly using a value approach. The fund looks cheap: it trades below its accounting value, pays a high dividend, and sits near the low end of its 52-week range. But its financial signals are weak and China-focused funds carry extra risks, so it is not a clear-cut bargain.
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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