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Wam Alternative Assets Limited (WMA.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$9.04 - $13.67$11.22
Multi-Stage$17.84 - $19.66$18.73
Blended Fair Value$14.98
Current Price$0.96
Upside1,468.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.64%0.00%0.050.050.040.040.040.050.050.040.040.02
YoY Growth--4.04%16.18%12.26%-6.65%-23.53%-3.62%23.91%3.34%147.59%0.00%
Dividend Yield--5.12%4.84%4.00%3.50%3.92%5.40%5.60%4.52%4.37%1.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)208.27
(-) Cash Dividends Paid (M)19.00
(=) Cash Retained (M)189.26
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.6526.0315.62
Cash Retained (M)189.26189.26189.26
(-) Cash Required (M)-41.65-26.03-15.62
(=) Excess Retained (M)147.61163.23173.64
(/) Shares Outstanding (M)198.21198.21198.21
(=) Excess Retained per Share0.740.820.88
LTM Dividend per Share0.100.100.10
(+) Excess Retained per Share0.740.820.88
(=) Adjusted Dividend0.840.920.97
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$9.04$11.22$13.67
Upside / Downside846.86%1,075.20%1,331.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)208.27206.18204.12202.08200.06198.06204.00
Payout Ratio9.12%25.30%41.47%57.65%73.82%90.00%92.50%
Projected Dividends (M)19.0052.1684.66116.50147.69178.25188.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)48.2148.7049.19
Year 2 PV (M)72.3173.7975.29
Year 3 PV (M)91.9694.8197.71
Year 4 PV (M)107.75112.21116.82
Year 5 PV (M)120.18126.44132.96
PV of Terminal Value (M)3,095.693,256.893,424.74
Equity Value (M)3,536.103,712.843,896.70
Shares Outstanding (M)198.21198.21198.21
Fair Value$17.84$18.73$19.66
Upside / Downside1,768.04%1,861.41%1,958.53%

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