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Installed Building Products, Inc. (IBP)

Company Dividend Discount ModelIndustry: Residential ConstructionSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$217.68 - $577.45$332.86
Multi-Stage$150.72 - $164.58$157.52
Blended Fair Value$245.19
Current Price$246.66
Upside-0.60%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%3.072.292.271.280.000.000.000.000.000.00
YoY Growth--34.23%0.68%77.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.79%0.89%1.99%1.52%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)255.70
(-) Cash Dividends Paid (M)87.40
(=) Cash Retained (M)168.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.1431.9619.18
Cash Retained (M)168.30168.30168.30
(-) Cash Required (M)-51.14-31.96-19.18
(=) Excess Retained (M)117.16136.34149.12
(/) Shares Outstanding (M)27.5527.5527.55
(=) Excess Retained per Share4.254.955.41
LTM Dividend per Share3.173.173.17
(+) Excess Retained per Share4.254.955.41
(=) Adjusted Dividend7.428.128.58
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$217.68$332.86$577.45
Upside / Downside-11.75%34.95%134.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)255.70272.32290.02308.87328.95350.33360.84
Payout Ratio34.18%45.34%56.51%67.67%78.84%90.00%92.50%
Projected Dividends (M)87.40123.48163.89209.02259.33315.30333.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)112.12113.18114.25
Year 2 PV (M)135.12137.69140.29
Year 3 PV (M)156.48160.97165.55
Year 4 PV (M)176.28183.06190.03
Year 5 PV (M)194.60204.00213.76
PV of Terminal Value (M)3,378.323,541.493,710.91
Equity Value (M)4,152.924,340.404,534.79
Shares Outstanding (M)27.5527.5527.55
Fair Value$150.72$157.52$164.58
Upside / Downside-38.90%-36.14%-33.28%

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