Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Diamond Hill Investment Group, Inc. (DHIL)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$153.84 - $233.93$191.42
Multi-Stage$228.39 - $250.10$239.04
Blended Fair Value$215.23
Current Price$140.01
Upside53.72%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-11.40%2.24%6.046.4611.2226.6713.8811.0710.278.877.486.22
YoY Growth---6.48%-42.42%-57.93%92.12%25.44%7.76%15.72%18.63%20.16%28.55%
Dividend Yield--4.23%4.29%6.82%14.24%8.90%12.26%7.21%4.30%3.84%3.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46.87
(-) Cash Dividends Paid (M)24.59
(=) Cash Retained (M)22.29
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.375.863.52
Cash Retained (M)22.2922.2922.29
(-) Cash Required (M)-9.37-5.86-3.52
(=) Excess Retained (M)12.9116.4318.77
(/) Shares Outstanding (M)2.742.742.74
(=) Excess Retained per Share4.726.006.86
LTM Dividend per Share8.998.998.99
(+) Excess Retained per Share4.726.006.86
(=) Adjusted Dividend13.7114.9915.85
WACC / Discount Rate8.95%8.95%8.95%
Growth Rate0.03%1.03%2.03%
Fair Value$153.84$191.42$233.93
Upside / Downside9.88%36.72%67.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46.8747.3647.8548.3448.8449.3550.83
Payout Ratio52.46%59.97%67.47%74.98%82.49%90.00%92.50%
Projected Dividends (M)24.5928.4032.2936.2540.2944.4147.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.95%8.95%8.95%
Growth Rate0.03%1.03%2.03%
Year 1 PV (M)25.8126.0726.33
Year 2 PV (M)26.6727.2027.74
Year 3 PV (M)27.2128.0328.87
Year 4 PV (M)27.4828.6029.75
Year 5 PV (M)27.5328.9430.40
PV of Terminal Value (M)490.20515.20541.20
Equity Value (M)624.90654.04684.29
Shares Outstanding (M)2.742.742.74
Fair Value$228.39$239.04$250.10
Upside / Downside63.12%70.73%78.63%

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