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Peoples Bancorp Inc. (PEBO)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$68.06 - $181.68$104.27
Multi-Stage$48.24 - $52.61$50.38
Blended Fair Value$77.33
Current Price$29.99
Upside157.84%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.57%23.49%1.581.471.200.880.770.730.590.420.320.28
YoY Growth--7.68%22.36%36.68%14.60%4.28%24.04%42.22%31.62%11.01%48.74%
Dividend Yield--5.33%5.11%4.66%2.80%2.31%3.32%1.88%1.17%1.00%1.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)101.95
(-) Cash Dividends Paid (M)57.51
(=) Cash Retained (M)44.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.3912.747.65
Cash Retained (M)44.4544.4544.45
(-) Cash Required (M)-20.39-12.74-7.65
(=) Excess Retained (M)24.0631.7036.80
(/) Shares Outstanding (M)35.3235.3235.32
(=) Excess Retained per Share0.680.901.04
LTM Dividend per Share1.631.631.63
(+) Excess Retained per Share0.680.901.04
(=) Adjusted Dividend2.312.532.67
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$68.06$104.27$181.68
Upside / Downside126.94%247.68%505.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)101.95108.58115.64123.16131.16139.69143.88
Payout Ratio56.40%63.12%69.84%76.56%83.28%90.00%92.50%
Projected Dividends (M)57.5168.5480.7694.29109.23125.72133.09

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)62.2462.8363.42
Year 2 PV (M)66.6167.8869.16
Year 3 PV (M)70.6272.6574.71
Year 4 PV (M)74.3077.1680.09
Year 5 PV (M)77.6681.4185.30
PV of Terminal Value (M)1,352.121,417.431,485.24
Equity Value (M)1,703.551,779.361,857.93
Shares Outstanding (M)35.3235.3235.32
Fair Value$48.24$50.38$52.61
Upside / Downside60.84%68.00%75.42%

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