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Virtu Financial, Inc. (VIRT)

Company Dividend Discount ModelIndustry: Financial - Capital MarketsSector: Financial Services

Valuation Snapshot

Stable Growth$116.14 - $310.03$177.93
Multi-Stage$85.37 - $92.94$89.09
Blended Fair Value$133.51
Current Price$35.50
Upside276.08%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.90%12.63%5.393.574.386.395.652.471.170.740.441.72
YoY Growth--50.94%-18.43%-31.52%13.13%128.89%110.94%57.22%69.00%-74.38%4.77%
Dividend Yield--14.13%16.96%23.15%17.17%18.19%11.85%4.74%2.25%2.59%7.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)422.56
(-) Cash Dividends Paid (M)378.20
(=) Cash Retained (M)44.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)84.5152.8231.69
Cash Retained (M)44.3544.3544.35
(-) Cash Required (M)-84.51-52.82-31.69
(=) Excess Retained (M)-40.16-8.4712.66
(/) Shares Outstanding (M)85.7885.7885.78
(=) Excess Retained per Share-0.47-0.100.15
LTM Dividend per Share4.414.414.41
(+) Excess Retained per Share-0.47-0.100.15
(=) Adjusted Dividend3.944.314.56
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$116.14$177.93$310.03
Upside / Downside227.15%401.22%773.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)422.56450.02479.27510.43543.60578.94596.31
Payout Ratio89.50%89.60%89.70%89.80%89.90%90.00%92.50%
Projected Dividends (M)378.20403.23429.92458.37488.70521.04551.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)366.20369.67373.14
Year 2 PV (M)354.57361.32368.14
Year 3 PV (M)343.31353.17363.21
Year 4 PV (M)332.41345.20358.34
Year 5 PV (M)321.86337.40353.54
PV of Terminal Value (M)5,603.985,874.656,155.68
Equity Value (M)7,322.327,641.417,972.06
Shares Outstanding (M)85.7885.7885.78
Fair Value$85.37$89.09$92.94
Upside / Downside140.47%150.94%161.80%

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