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ServisFirst Bancshares, Inc. (SFBS)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$109.68 - $290.95$167.71
Multi-Stage$75.39 - $82.35$78.81
Blended Fair Value$123.26
Current Price$80.53
Upside53.06%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS22.15%33.61%1.200.840.690.600.520.440.370.180.140.11
YoY Growth--43.10%21.99%15.22%15.20%17.37%19.11%101.14%27.77%33.57%63.01%
Dividend Yield--1.45%1.28%1.26%0.62%0.84%1.50%1.07%0.45%0.40%0.49%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)255.39
(-) Cash Dividends Paid (M)71.27
(=) Cash Retained (M)184.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.0831.9219.15
Cash Retained (M)184.13184.13184.13
(-) Cash Required (M)-51.08-31.92-19.15
(=) Excess Retained (M)133.05152.20164.97
(/) Shares Outstanding (M)54.6254.6254.62
(=) Excess Retained per Share2.442.793.02
LTM Dividend per Share1.301.301.30
(+) Excess Retained per Share2.442.793.02
(=) Adjusted Dividend3.744.094.33
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$109.68$167.71$290.95
Upside / Downside36.20%108.26%261.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)255.39271.99289.67308.50328.55349.91360.41
Payout Ratio27.90%40.32%52.74%65.16%77.58%90.00%92.50%
Projected Dividends (M)71.27109.68152.78201.02254.89314.92333.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)99.59100.53101.47
Year 2 PV (M)125.96128.36130.78
Year 3 PV (M)150.49154.81159.21
Year 4 PV (M)173.26179.93186.78
Year 5 PV (M)194.37203.76213.51
PV of Terminal Value (M)3,374.253,537.233,706.44
Equity Value (M)4,117.924,304.614,498.19
Shares Outstanding (M)54.6254.6254.62
Fair Value$75.39$78.81$82.35
Upside / Downside-6.38%-2.14%2.26%

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