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Independent Bank Corp. (INDB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$150.25 - $401.10$230.20
Multi-Stage$104.04 - $113.60$108.73
Blended Fair Value$169.46
Current Price$69.17
Upside145.00%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.55%15.67%2.232.272.171.451.411.230.930.790.690.61
YoY Growth---1.84%4.56%49.41%3.12%14.20%32.63%17.98%14.59%13.52%16.62%
Dividend Yield--3.55%4.47%3.31%1.78%1.67%1.92%1.11%1.10%1.06%1.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)275.35
(-) Cash Dividends Paid (M)98.73
(=) Cash Retained (M)176.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.0734.4220.65
Cash Retained (M)176.62176.62176.62
(-) Cash Required (M)-55.07-34.42-20.65
(=) Excess Retained (M)121.55142.20155.97
(/) Shares Outstanding (M)43.2043.2043.20
(=) Excess Retained per Share2.813.293.61
LTM Dividend per Share2.292.292.29
(+) Excess Retained per Share2.813.293.61
(=) Adjusted Dividend5.105.585.90
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$150.25$230.20$401.10
Upside / Downside117.22%232.80%479.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)275.35293.24312.30332.60354.22377.25388.57
Payout Ratio35.86%46.69%57.51%68.34%79.17%90.00%92.50%
Projected Dividends (M)98.73136.90179.62227.31280.44339.52359.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)124.33125.51126.68
Year 2 PV (M)148.14150.96153.81
Year 3 PV (M)170.25175.14180.12
Year 4 PV (M)190.76198.09205.64
Year 5 PV (M)209.73219.86230.38
PV of Terminal Value (M)3,651.663,828.044,011.17
Equity Value (M)4,494.874,697.604,907.79
Shares Outstanding (M)43.2043.2043.20
Fair Value$104.04$108.73$113.60
Upside / Downside50.41%57.20%64.23%

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