Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Virtus Equity & Convertible Income Fund (NIE)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$45.02 - $64.07$54.39
Multi-Stage$71.38 - $78.24$74.74
Blended Fair Value$64.57
Current Price$24.12
Upside167.69%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
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)186.12
(-) Cash Dividends Paid (M)84.24
(=) Cash Retained (M)101.89
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)37.2223.2713.96
Cash Retained (M)101.89101.89101.89
(-) Cash Required (M)-37.22-23.27-13.96
(=) Excess Retained (M)64.6678.6287.93
(/) Shares Outstanding (M)27.7127.7127.71
(=) Excess Retained per Share2.332.843.17
LTM Dividend per Share3.043.043.04
(+) Excess Retained per Share2.332.843.17
(=) Adjusted Dividend5.375.886.21
WACC / Discount Rate9.70%9.70%9.70%
Growth Rate-2.00%-1.00%0.00%
Fair Value$45.02$54.39$64.07
Upside / Downside86.65%125.51%165.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)186.12184.26182.42180.59178.79177.00182.31
Payout Ratio45.26%54.21%63.15%72.10%81.05%90.00%92.50%
Projected Dividends (M)84.2499.88115.21130.21144.91159.30168.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.70%9.70%9.70%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)90.1391.0591.97
Year 2 PV (M)93.8195.7497.68
Year 3 PV (M)95.6898.64101.66
Year 4 PV (M)96.09100.07104.18
Year 5 PV (M)95.32100.29105.45
PV of Terminal Value (M)1,506.731,585.191,666.89
Equity Value (M)1,977.782,070.982,167.84
Shares Outstanding (M)27.7127.7127.71
Fair Value$71.38$74.74$78.24
Upside / Downside195.92%209.87%224.36%

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