Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Oak Valley Bancorp (OVLY)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$38.24 - $81.10$54.29
Multi-Stage$28.37 - $30.96$29.64
Blended Fair Value$41.96
Current Price$28.17
Upside48.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.10%11.01%0.450.320.300.290.280.270.260.240.230.20
YoY Growth--41.61%6.95%3.69%3.78%3.84%4.58%4.70%4.23%14.45%28.60%
Dividend Yield--1.81%1.33%1.26%1.56%1.62%1.70%1.33%1.09%1.77%2.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)16.89
(-) Cash Dividends Paid (M)5.02
(=) Cash Retained (M)11.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.382.111.27
Cash Retained (M)11.8711.8711.87
(-) Cash Required (M)-3.38-2.11-1.27
(=) Excess Retained (M)8.499.7610.60
(/) Shares Outstanding (M)8.298.298.29
(=) Excess Retained per Share1.031.181.28
LTM Dividend per Share0.610.610.61
(+) Excess Retained per Share1.031.181.28
(=) Adjusted Dividend1.631.781.89
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate5.50%6.50%7.50%
Fair Value$38.24$54.29$81.10
Upside / Downside35.75%92.71%187.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)16.8917.9919.1620.4121.7323.1423.84
Payout Ratio29.73%41.78%53.84%65.89%77.95%90.00%92.50%
Projected Dividends (M)5.027.5210.3213.4516.9420.8322.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)6.776.836.90
Year 2 PV (M)8.378.538.69
Year 3 PV (M)9.8210.1010.39
Year 4 PV (M)11.1411.5712.01
Year 5 PV (M)12.3412.9313.55
PV of Terminal Value (M)186.59195.60204.96
Equity Value (M)235.02245.57256.50
Shares Outstanding (M)8.298.298.29
Fair Value$28.37$29.64$30.96
Upside / Downside0.70%5.22%9.90%

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