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Sound Point Acquisition Corp I, Ltd (SPCMU)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$8.41 - $12.11$10.21
Multi-Stage$13.09 - $14.41$13.74
Blended Fair Value$11.98
Current Price$10.54
Upside13.64%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%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)38.51
(-) Cash Dividends Paid (M)0.51
(=) Cash Retained (M)38.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.704.812.89
Cash Retained (M)38.0038.0038.00
(-) Cash Required (M)-7.70-4.81-2.89
(=) Excess Retained (M)30.3033.1835.11
(/) Shares Outstanding (M)32.3432.3432.34
(=) Excess Retained per Share0.941.031.09
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.941.031.09
(=) Adjusted Dividend0.951.041.10
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$8.41$10.21$12.11
Upside / Downside-20.20%-3.09%14.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)38.5138.1237.7437.3736.9936.6237.72
Payout Ratio1.33%19.06%36.80%54.53%72.27%90.00%92.50%
Projected Dividends (M)0.517.2713.8920.3826.7332.9634.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)6.596.666.73
Year 2 PV (M)11.4311.6711.91
Year 3 PV (M)15.2215.6916.17
Year 4 PV (M)18.1218.8719.64
Year 5 PV (M)20.2721.3322.42
PV of Terminal Value (M)351.89370.22389.29
Equity Value (M)423.53444.43466.17
Shares Outstanding (M)32.3432.3432.34
Fair Value$13.09$13.74$14.41
Upside / Downside24.24%30.37%36.75%

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