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Tetragon Financial Group Limited (TFG.AS)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$108.44 - $178.49$139.57
Multi-Stage$125.16 - $137.29$131.11
Blended Fair Value$135.34
Current Price$16.05
Upside743.25%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-13.50%-14.46%0.240.250.260.260.340.490.520.520.750.94
YoY Growth---6.87%-2.10%-1.65%-21.17%-31.47%-5.68%0.64%-31.09%-20.07%-17.20%
Dividend Yield--1.60%2.60%2.49%2.95%3.42%6.65%4.00%3.98%6.11%9.60%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)857.45
(-) Cash Dividends Paid (M)28.45
(=) Cash Retained (M)829.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)171.49107.1864.31
Cash Retained (M)829.00829.00829.00
(-) Cash Required (M)-171.49-107.18-64.31
(=) Excess Retained (M)657.51721.82764.69
(/) Shares Outstanding (M)91.5891.5891.58
(=) Excess Retained per Share7.187.888.35
LTM Dividend per Share0.310.310.31
(+) Excess Retained per Share7.187.888.35
(=) Adjusted Dividend7.498.198.66
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.05%3.05%4.05%
Fair Value$108.44$139.57$178.49
Upside / Downside575.66%769.62%1,012.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)857.45883.59910.54938.30966.91996.391,026.28
Payout Ratio3.32%20.65%37.99%55.33%72.66%90.00%92.50%
Projected Dividends (M)28.45182.50345.92519.13702.59896.75949.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.05%3.05%4.05%
Year 1 PV (M)165.66167.28168.90
Year 2 PV (M)285.02290.63296.30
Year 3 PV (M)388.26399.79411.54
Year 4 PV (M)476.97495.95515.48
Year 5 PV (M)552.60580.21608.92
PV of Terminal Value (M)9,593.1410,072.4710,570.77
Equity Value (M)11,461.6512,006.3312,571.91
Shares Outstanding (M)91.5891.5891.58
Fair Value$125.16$131.11$137.29
Upside / Downside679.82%716.88%755.36%

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