Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Installed Building Products, Inc. (IBP)

Company Dividend Discount ModelIndustry: Residential ConstructionSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$207.68 - $520.94$312.04
Multi-Stage$146.24 - $159.66$152.83
Blended Fair Value$232.43
Current Price$246.66
Upside-5.77%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%3.072.292.271.280.000.000.000.000.000.00
YoY Growth--34.23%0.68%77.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.79%0.89%1.99%1.52%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)255.70
(-) Cash Dividends Paid (M)87.40
(=) Cash Retained (M)168.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.1431.9619.18
Cash Retained (M)168.30168.30168.30
(-) Cash Required (M)-51.14-31.96-19.18
(=) Excess Retained (M)117.16136.34149.12
(/) Shares Outstanding (M)27.5527.5527.55
(=) Excess Retained per Share4.254.955.41
LTM Dividend per Share3.173.173.17
(+) Excess Retained per Share4.254.955.41
(=) Adjusted Dividend7.428.128.58
WACC / Discount Rate9.27%9.27%9.27%
Growth Rate5.50%6.50%7.50%
Fair Value$207.68$312.04$520.94
Upside / Downside-15.80%26.51%111.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)255.70272.32290.02308.87328.95350.33360.84
Payout Ratio34.18%45.34%56.51%67.67%78.84%90.00%92.50%
Projected Dividends (M)87.40123.48163.89209.02259.33315.30333.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.27%9.27%9.27%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)111.94113.01114.07
Year 2 PV (M)134.69137.26139.85
Year 3 PV (M)155.73160.20164.76
Year 4 PV (M)175.16181.90188.83
Year 5 PV (M)193.07202.39212.07
PV of Terminal Value (M)3,258.953,416.363,579.80
Equity Value (M)4,029.554,211.124,399.37
Shares Outstanding (M)27.5527.5527.55
Fair Value$146.24$152.83$159.66
Upside / Downside-40.71%-38.04%-35.27%

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