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CVB Financial Corp. (CVBF)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$21.49 - $39.08$28.80
Multi-Stage$22.43 - $24.50$23.44
Blended Fair Value$26.12
Current Price$18.91
Upside38.14%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.24%10.21%0.800.800.750.700.710.690.470.410.370.35
YoY Growth--0.13%6.94%6.86%-0.75%3.28%44.55%15.63%10.50%5.65%15.52%
Dividend Yield--4.36%4.61%4.51%3.03%3.21%3.42%2.20%1.81%1.68%2.02%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)205.11
(-) Cash Dividends Paid (M)111.43
(=) Cash Retained (M)93.69
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.0225.6415.38
Cash Retained (M)93.6993.6993.69
(-) Cash Required (M)-41.02-25.64-15.38
(=) Excess Retained (M)52.6668.0578.30
(/) Shares Outstanding (M)138.95138.95138.95
(=) Excess Retained per Share0.380.490.56
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share0.380.490.56
(=) Adjusted Dividend1.181.291.37
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.40%4.40%5.40%
Fair Value$21.49$28.80$39.08
Upside / Downside13.64%52.29%106.68%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)205.11214.13223.55233.38243.64254.36261.99
Payout Ratio54.32%61.46%68.59%75.73%82.86%90.00%92.50%
Projected Dividends (M)111.43131.60153.34176.74201.90228.92242.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.40%4.40%5.40%
Year 1 PV (M)119.49120.65121.81
Year 2 PV (M)126.42128.88131.36
Year 3 PV (M)132.30136.17140.13
Year 4 PV (M)137.22142.61148.15
Year 5 PV (M)141.27148.24155.48
PV of Terminal Value (M)2,459.792,581.062,707.07
Equity Value (M)3,116.503,257.613,403.98
Shares Outstanding (M)138.95138.95138.95
Fair Value$22.43$23.44$24.50
Upside / Downside18.61%23.98%29.55%

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