Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Associated Banc-Corp (ASB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$27.03 - $80.51$42.77
Multi-Stage$22.94 - $25.05$23.97
Blended Fair Value$33.37
Current Price$25.71
Upside29.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.48%9.02%0.850.790.750.710.680.680.640.460.410.38
YoY Growth--7.46%5.20%6.10%3.60%0.20%5.96%38.08%12.62%8.74%6.29%
Dividend Yield--3.76%3.71%4.17%3.10%3.19%5.32%2.91%1.87%1.69%2.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.03
(-) Cash Dividends Paid (M)154.13
(=) Cash Retained (M)21.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2122.0013.20
Cash Retained (M)21.9021.9021.90
(-) Cash Required (M)-35.21-22.00-13.20
(=) Excess Retained (M)-13.30-0.108.70
(/) Shares Outstanding (M)164.34164.34164.34
(=) Excess Retained per Share-0.080.000.05
LTM Dividend per Share0.940.940.94
(+) Excess Retained per Share-0.080.000.05
(=) Adjusted Dividend0.860.940.99
WACC / Discount Rate7.69%7.69%7.69%
Growth Rate4.39%5.39%6.39%
Fair Value$27.03$42.77$80.51
Upside / Downside5.14%66.37%213.15%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.03185.51195.50206.03217.13228.82235.69
Payout Ratio87.56%88.05%88.53%89.02%89.51%90.00%92.50%
Projected Dividends (M)154.13163.34173.09183.42194.35205.94218.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.69%7.69%7.69%
Growth Rate4.39%5.39%6.39%
Year 1 PV (M)150.23151.67153.11
Year 2 PV (M)146.42149.24152.08
Year 3 PV (M)142.70146.84151.06
Year 4 PV (M)139.08144.48150.05
Year 5 PV (M)135.54142.16149.03
PV of Terminal Value (M)3,056.413,205.643,360.65
Equity Value (M)3,770.383,940.034,115.98
Shares Outstanding (M)164.34164.34164.34
Fair Value$22.94$23.97$25.05
Upside / Downside-10.76%-6.75%-2.58%

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