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Special Opportunities Fund, Inc. (SPE)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$139.03 - $367.66$212.38
Multi-Stage$97.46 - $106.36$101.83
Blended Fair Value$157.11
Current Price$15.49
Upside914.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.16%0.00%1.151.101.441.930.890.741.151.050.700.00
YoY Growth--4.64%-24.19%-25.01%116.16%20.55%-35.47%9.02%49.42%0.00%0.00%
Dividend Yield--7.83%9.23%12.67%12.47%6.33%5.02%9.68%7.01%5.15%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)63.93
(-) Cash Dividends Paid (M)28.25
(=) Cash Retained (M)35.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.797.994.79
Cash Retained (M)35.6835.6835.68
(-) Cash Required (M)-12.79-7.99-4.79
(=) Excess Retained (M)22.8927.6930.88
(/) Shares Outstanding (M)10.7610.7610.76
(=) Excess Retained per Share2.132.572.87
LTM Dividend per Share2.632.632.63
(+) Excess Retained per Share2.132.572.87
(=) Adjusted Dividend4.755.205.50
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate5.50%6.50%7.50%
Fair Value$139.03$212.38$367.66
Upside / Downside797.54%1,271.11%2,273.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)63.9368.0972.5177.2382.2587.5990.22
Payout Ratio44.19%53.35%62.51%71.68%80.84%90.00%92.50%
Projected Dividends (M)28.2536.3345.3355.3566.4978.8383.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)32.9833.2933.61
Year 2 PV (M)37.3738.0838.80
Year 3 PV (M)41.4342.6243.83
Year 4 PV (M)45.1846.9248.70
Year 5 PV (M)48.6450.9953.42
PV of Terminal Value (M)843.08883.80926.08
Equity Value (M)1,048.671,095.691,144.44
Shares Outstanding (M)10.7610.7610.76
Fair Value$97.46$101.83$106.36
Upside / Downside529.18%557.40%586.64%

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