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BlackRock Science and Technology Trust (BST)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$155.25 - $262.32$201.99
Multi-Stage$180.96 - $197.86$189.25
Blended Fair Value$195.62
Current Price$38.17
Upside412.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS6.70%0.00%2.962.792.823.471.362.140.000.000.000.00
YoY Growth--6.05%-1.08%-18.75%155.64%-36.52%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--8.10%8.29%9.95%6.95%2.55%6.43%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)433.55
(-) Cash Dividends Paid (M)203.37
(=) Cash Retained (M)230.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)86.7154.1932.52
Cash Retained (M)230.18230.18230.18
(-) Cash Required (M)-86.71-54.19-32.52
(=) Excess Retained (M)143.47175.99197.66
(/) Shares Outstanding (M)34.6134.6134.61
(=) Excess Retained per Share4.155.095.71
LTM Dividend per Share5.885.885.88
(+) Excess Retained per Share4.155.095.71
(=) Adjusted Dividend10.0210.9611.59
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.46%3.46%4.46%
Fair Value$155.25$201.99$262.32
Upside / Downside306.73%429.20%587.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)433.55448.57464.11480.19496.83514.05529.47
Payout Ratio46.91%55.53%64.14%72.76%81.38%90.00%92.50%
Projected Dividends (M)203.37249.07297.70349.40404.33462.64489.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.46%3.46%4.46%
Year 1 PV (M)226.13228.34230.55
Year 2 PV (M)245.39250.20255.06
Year 3 PV (M)261.48269.21277.09
Year 4 PV (M)274.71285.60296.80
Year 5 PV (M)285.38299.58314.34
PV of Terminal Value (M)4,968.925,216.175,473.16
Equity Value (M)6,262.026,549.106,847.01
Shares Outstanding (M)34.6134.6134.61
Fair Value$180.96$189.25$197.86
Upside / Downside374.08%395.81%418.37%

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