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Pershing Square Holdings, Ltd. (PSH.AS)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$91.71 - $132.04$111.39
Multi-Stage$144.10 - $158.54$151.18
Blended Fair Value$131.28
Current Price$47.65
Upside175.52%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.08%0.00%0.570.530.500.430.440.470.000.000.000.00
YoY Growth--8.49%5.91%17.10%-1.83%-7.53%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.21%1.14%1.45%1.04%1.24%2.46%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,416.72
(-) Cash Dividends Paid (M)156.56
(=) Cash Retained (M)2,260.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)483.34302.09181.25
Cash Retained (M)2,260.172,260.172,260.17
(-) Cash Required (M)-483.34-302.09-181.25
(=) Excess Retained (M)1,776.821,958.082,078.91
(/) Shares Outstanding (M)186.45186.45186.45
(=) Excess Retained per Share9.5310.5011.15
LTM Dividend per Share0.840.840.84
(+) Excess Retained per Share9.5310.5011.15
(=) Adjusted Dividend10.3711.3411.99
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$91.71$111.39$132.04
Upside / Downside92.48%133.77%177.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,416.722,392.562,368.632,344.942,321.492,298.282,367.23
Payout Ratio6.48%23.18%39.89%56.59%73.30%90.00%92.50%
Projected Dividends (M)156.56554.65944.771,327.031,701.552,068.452,189.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)503.35508.48513.62
Year 2 PV (M)778.07794.03810.15
Year 3 PV (M)991.791,022.461,053.76
Year 4 PV (M)1,154.061,201.891,251.19
Year 5 PV (M)1,273.131,339.431,408.46
PV of Terminal Value (M)22,167.0023,321.2924,523.17
Equity Value (M)26,867.4028,187.5829,560.35
Shares Outstanding (M)186.45186.45186.45
Fair Value$144.10$151.18$158.54
Upside / Downside202.41%217.27%232.72%

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