Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

West Bancorporation, Inc. (WTBA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$75.93 - $377.15$159.51
Multi-Stage$42.19 - $46.10$44.11
Blended Fair Value$101.81
Current Price$20.32
Upside401.03%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.36%7.92%0.990.980.980.910.810.800.750.680.640.59
YoY Growth--0.61%0.51%6.92%12.51%1.75%6.95%10.41%6.47%8.52%26.91%
Dividend Yield--4.96%5.68%5.35%3.36%3.37%4.89%3.55%2.64%2.77%3.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)32.23
(-) Cash Dividends Paid (M)16.89
(=) Cash Retained (M)15.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.454.032.42
Cash Retained (M)15.3515.3515.35
(-) Cash Required (M)-6.45-4.03-2.42
(=) Excess Retained (M)8.9011.3212.93
(/) Shares Outstanding (M)17.0017.0017.00
(=) Excess Retained per Share0.520.670.76
LTM Dividend per Share0.990.990.99
(+) Excess Retained per Share0.520.670.76
(=) Adjusted Dividend1.521.661.75
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate5.50%6.50%7.50%
Fair Value$75.93$159.51$377.15
Upside / Downside273.68%684.97%1,756.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)32.2334.3336.5638.9341.4744.1645.49
Payout Ratio52.39%59.91%67.44%74.96%82.48%90.00%92.50%
Projected Dividends (M)16.8920.5724.6529.1834.2039.7442.07

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.61%7.61%7.61%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)18.9319.1119.29
Year 2 PV (M)20.8921.2921.69
Year 3 PV (M)22.7723.4224.09
Year 4 PV (M)24.5625.5126.48
Year 5 PV (M)26.2827.5528.86
PV of Terminal Value (M)603.67632.83663.10
Equity Value (M)717.10749.71783.52
Shares Outstanding (M)17.0017.0017.00
Fair Value$42.19$44.11$46.10
Upside / Downside107.64%117.08%126.87%

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