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SEI Investments Company (SEIC)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$75.73 - $134.98$100.68
Multi-Stage$77.75 - $85.12$81.36
Blended Fair Value$91.02
Current Price$84.85
Upside7.28%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.62%4.94%0.930.890.850.820.810.780.730.690.660.62
YoY Growth--4.80%4.56%4.09%1.54%3.15%6.81%6.14%4.93%5.82%7.72%
Dividend Yield--1.20%1.26%1.48%1.36%1.32%1.69%1.36%0.92%1.30%1.44%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)698.58
(-) Cash Dividends Paid (M)123.35
(=) Cash Retained (M)575.23
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)139.7287.3252.39
Cash Retained (M)575.23575.23575.23
(-) Cash Required (M)-139.72-87.32-52.39
(=) Excess Retained (M)435.51487.90522.83
(/) Shares Outstanding (M)128.97128.97128.97
(=) Excess Retained per Share3.383.784.05
LTM Dividend per Share0.960.960.96
(+) Excess Retained per Share3.383.784.05
(=) Adjusted Dividend4.334.745.01
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.19%4.19%5.19%
Fair Value$75.73$100.68$134.98
Upside / Downside-10.75%18.66%59.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)698.58727.87758.39790.19823.32857.84883.58
Payout Ratio17.66%32.13%46.59%61.06%75.53%90.00%92.50%
Projected Dividends (M)123.35233.83353.37482.51621.87772.06817.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.19%4.19%5.19%
Year 1 PV (M)212.28214.33216.39
Year 2 PV (M)291.22296.89302.61
Year 3 PV (M)360.99371.58382.39
Year 4 PV (M)422.35438.96456.06
Year 5 PV (M)476.02499.54523.97
PV of Terminal Value (M)8,263.698,671.929,096.13
Equity Value (M)10,026.5410,493.2210,977.55
Shares Outstanding (M)128.97128.97128.97
Fair Value$77.75$81.36$85.12
Upside / Downside-8.37%-4.11%0.32%

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