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Fortress Capital Acquisition Corp. (FCAX)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$5.61 - $8.08$6.82
Multi-Stage$8.80 - $9.68$9.23
Blended Fair Value$8.02
Current Price$9.95
Upside-19.36%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2021
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)39.73
(-) Cash Dividends Paid (M)2.43
(=) Cash Retained (M)37.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.954.972.98
Cash Retained (M)37.3037.3037.30
(-) Cash Required (M)-7.95-4.97-2.98
(=) Excess Retained (M)29.3632.3434.32
(/) Shares Outstanding (M)50.0050.0050.00
(=) Excess Retained per Share0.590.650.69
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.590.650.69
(=) Adjusted Dividend0.640.700.73
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$5.61$6.82$8.08
Upside / Downside-43.59%-31.50%-18.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)39.7339.3338.9438.5538.1637.7838.91
Payout Ratio6.11%22.89%39.66%56.44%73.22%90.00%92.50%
Projected Dividends (M)2.439.0015.4421.7627.9434.0035.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)8.178.258.33
Year 2 PV (M)12.7112.9813.24
Year 3 PV (M)16.2516.7617.27
Year 4 PV (M)18.9419.7220.53
Year 5 PV (M)20.9122.0023.13
PV of Terminal Value (M)363.01381.92401.60
Equity Value (M)440.00461.62484.11
Shares Outstanding (M)50.0050.0050.00
Fair Value$8.80$9.23$9.68
Upside / Downside-11.56%-7.21%-2.69%

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