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LINKBANCORP, Inc. (LNKB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$7.25 - $10.44$8.81
Multi-Stage$11.77 - $12.93$12.34
Blended Fair Value$10.57
Current Price$7.13
Upside48.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020
DPS0.00%0.00%0.300.130.090.040.040.000.000.000.000.00
YoY Growth--128.03%46.07%128.04%2.02%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.40%1.90%1.37%0.35%0.35%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)38.15
(-) Cash Dividends Paid (M)11.14
(=) Cash Retained (M)27.01
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.634.772.86
Cash Retained (M)27.0127.0127.01
(-) Cash Required (M)-7.63-4.77-2.86
(=) Excess Retained (M)19.3822.2424.15
(/) Shares Outstanding (M)37.2237.2237.22
(=) Excess Retained per Share0.520.600.65
LTM Dividend per Share0.300.300.30
(+) Excess Retained per Share0.520.600.65
(=) Adjusted Dividend0.820.900.95
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.25$8.81$10.44
Upside / Downside1.71%23.53%46.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)38.1537.7737.3937.0236.6536.2837.37
Payout Ratio29.21%41.36%53.52%65.68%77.84%90.00%92.50%
Projected Dividends (M)11.1415.6220.0124.3228.5332.6534.57

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)14.1814.3214.47
Year 2 PV (M)16.4816.8217.16
Year 3 PV (M)18.1718.7319.31
Year 4 PV (M)19.3520.1520.98
Year 5 PV (M)20.1021.1522.24
PV of Terminal Value (M)349.95368.18387.15
Equity Value (M)438.24459.35481.30
Shares Outstanding (M)37.2237.2237.22
Fair Value$11.77$12.34$12.93
Upside / Downside65.11%73.07%81.34%

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