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Fidus Investment Corporation (FDUS)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$55.18 - $146.39$84.38
Multi-Stage$37.49 - $40.98$39.20
Blended Fair Value$61.79
Current Price$20.26
Upside204.99%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.001.410.890.941.131.131.060.860.72
YoY Growth--0.00%-100.00%59.31%-5.28%-16.95%-0.04%6.43%23.22%19.21%4.85%
Dividend Yield--0.00%0.00%7.41%4.39%6.02%17.03%7.30%8.23%4.90%4.65%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)81.67
(-) Cash Dividends Paid (M)14.58
(=) Cash Retained (M)67.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.3310.216.13
Cash Retained (M)67.0967.0967.09
(-) Cash Required (M)-16.33-10.21-6.13
(=) Excess Retained (M)50.7656.8860.96
(/) Shares Outstanding (M)34.7234.7234.72
(=) Excess Retained per Share1.461.641.76
LTM Dividend per Share0.420.420.42
(+) Excess Retained per Share1.461.641.76
(=) Adjusted Dividend1.882.062.18
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$55.18$84.38$146.39
Upside / Downside172.38%316.49%622.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)81.6786.9892.6498.66105.07111.90115.26
Payout Ratio17.86%32.28%46.71%61.14%75.57%90.00%92.50%
Projected Dividends (M)14.5828.0843.2760.3279.40100.71106.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)25.5025.7425.98
Year 2 PV (M)35.6836.3637.04
Year 3 PV (M)45.1646.4547.77
Year 4 PV (M)53.9756.0558.18
Year 5 PV (M)62.1665.1668.28
PV of Terminal Value (M)1,079.071,131.191,185.30
Equity Value (M)1,301.531,360.951,422.56
Shares Outstanding (M)34.7234.7234.72
Fair Value$37.49$39.20$40.98
Upside / Downside85.04%93.49%102.25%

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