Definitive Analysis
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Enterprise Bancorp, Inc. (EBTC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$76.63 - $203.28$117.18
Multi-Stage$52.60 - $57.46$54.98
Blended Fair Value$86.08
Current Price$38.93
Upside121.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.04%7.79%0.830.780.680.610.570.510.440.380.460.41
YoY Growth--5.58%14.24%11.72%7.35%11.52%17.05%14.66%-16.48%10.20%6.28%
Dividend Yield--2.12%3.09%2.18%1.53%1.76%1.90%1.47%1.08%1.31%1.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)40.66
(-) Cash Dividends Paid (M)10.84
(=) Cash Retained (M)29.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.135.083.05
Cash Retained (M)29.8229.8229.82
(-) Cash Required (M)-8.13-5.08-3.05
(=) Excess Retained (M)21.6924.7426.77
(/) Shares Outstanding (M)12.4512.4512.45
(=) Excess Retained per Share1.741.992.15
LTM Dividend per Share0.870.870.87
(+) Excess Retained per Share1.741.992.15
(=) Adjusted Dividend2.612.863.02
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$76.63$117.18$203.28
Upside / Downside96.84%200.99%422.16%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)40.6643.3046.1249.1252.3155.7157.38
Payout Ratio26.66%39.33%52.00%64.66%77.33%90.00%92.50%
Projected Dividends (M)10.8417.0323.9831.7640.4550.1453.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)15.4615.6115.76
Year 2 PV (M)19.7720.1520.53
Year 3 PV (M)23.7824.4625.15
Year 4 PV (M)27.5028.5529.64
Year 5 PV (M)30.9532.4433.99
PV of Terminal Value (M)537.21563.16590.10
Equity Value (M)654.67684.37715.18
Shares Outstanding (M)12.4512.4512.45
Fair Value$52.60$54.98$57.46
Upside / Downside35.11%41.24%47.59%

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