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Verisk Analytics, Inc. (VRSK)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$112.44 - $225.26$156.35
Multi-Stage$99.63 - $108.93$104.19
Blended Fair Value$130.27
Current Price$251.51
Upside-48.20%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.24%0.00%1.571.401.391.341.251.160.000.000.000.00
YoY Growth--12.45%0.82%3.72%7.05%7.52%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.53%0.60%0.72%0.62%0.71%0.83%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)921.40
(-) Cash Dividends Paid (M)243.30
(=) Cash Retained (M)678.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)184.28115.1869.11
Cash Retained (M)678.10678.10678.10
(-) Cash Required (M)-184.28-115.18-69.11
(=) Excess Retained (M)493.82562.93609.00
(/) Shares Outstanding (M)140.70140.70140.70
(=) Excess Retained per Share3.514.004.33
LTM Dividend per Share1.731.731.73
(+) Excess Retained per Share3.514.004.33
(=) Adjusted Dividend5.245.736.06
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.24%5.24%6.24%
Fair Value$112.44$156.35$225.26
Upside / Downside-55.29%-37.83%-10.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)921.40969.691,020.511,074.001,130.291,189.531,225.22
Payout Ratio26.41%39.12%51.84%64.56%77.28%90.00%92.50%
Projected Dividends (M)243.30379.39529.07693.40873.501,070.581,133.33

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.24%5.24%6.24%
Year 1 PV (M)344.44347.75351.05
Year 2 PV (M)436.10444.51452.99
Year 3 PV (M)518.91533.99549.36
Year 4 PV (M)593.49616.59640.36
Year 5 PV (M)660.39692.68726.22
PV of Terminal Value (M)11,464.4112,024.9612,607.22
Equity Value (M)14,017.7414,660.4715,327.21
Shares Outstanding (M)140.70140.70140.70
Fair Value$99.63$104.19$108.93
Upside / Downside-60.39%-58.57%-56.69%

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