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Installed Building Products, Inc. (IBP)

Company Dividend Discount ModelIndustry: Residential ConstructionSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$165.45 - $337.52$231.59
Multi-Stage$125.32 - $136.70$130.90
Blended Fair Value$181.25
Current Price$246.66
Upside-26.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%3.072.292.271.280.000.000.000.000.000.00
YoY Growth--34.23%0.68%77.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.79%0.89%1.99%1.52%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)255.70
(-) Cash Dividends Paid (M)87.40
(=) Cash Retained (M)168.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.1431.9619.18
Cash Retained (M)168.30168.30168.30
(-) Cash Required (M)-51.14-31.96-19.18
(=) Excess Retained (M)117.16136.34149.12
(/) Shares Outstanding (M)27.5527.5527.55
(=) Excess Retained per Share4.254.955.41
LTM Dividend per Share3.173.173.17
(+) Excess Retained per Share4.254.955.41
(=) Adjusted Dividend7.428.128.58
WACC / Discount Rate10.23%10.23%10.23%
Growth Rate5.50%6.50%7.50%
Fair Value$165.45$231.59$337.52
Upside / Downside-32.93%-6.11%36.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)255.70272.32290.02308.87328.95350.33360.84
Payout Ratio34.18%45.34%56.51%67.67%78.84%90.00%92.50%
Projected Dividends (M)87.40123.48163.89209.02259.33315.30333.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.23%10.23%10.23%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)110.97112.02113.07
Year 2 PV (M)132.35134.87137.41
Year 3 PV (M)151.69156.04160.48
Year 4 PV (M)169.12175.63182.32
Year 5 PV (M)184.78193.71202.97
PV of Terminal Value (M)2,704.062,834.672,970.28
Equity Value (M)3,452.973,606.933,766.53
Shares Outstanding (M)27.5527.5527.55
Fair Value$125.32$130.90$136.70
Upside / Downside-49.19%-46.93%-44.58%

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