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Westwood Holdings Group, Inc. (WHG)

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

Valuation Snapshot

Stable Growth$4.95 - $6.92$5.93
Multi-Stage$9.29 - $10.18$9.73
Blended Fair Value$7.83
Current Price$16.49
Upside-52.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-26.91%-9.00%0.620.630.642.621.262.982.812.502.221.90
YoY Growth---1.13%-2.19%-75.47%107.66%-57.67%5.96%12.31%12.76%16.99%19.03%
Dividend Yield--3.83%4.80%5.73%17.08%8.71%16.26%7.82%4.43%4.15%3.23%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7.25
(-) Cash Dividends Paid (M)5.35
(=) Cash Retained (M)1.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.450.910.54
Cash Retained (M)1.901.901.90
(-) Cash Required (M)-1.45-0.91-0.54
(=) Excess Retained (M)0.451.001.36
(/) Shares Outstanding (M)8.768.768.76
(=) Excess Retained per Share0.050.110.16
LTM Dividend per Share0.610.610.61
(+) Excess Retained per Share0.050.110.16
(=) Adjusted Dividend0.660.720.77
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.77%-2.77%-1.77%
Fair Value$4.95$5.93$6.92
Upside / Downside-69.98%-64.02%-58.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7.257.056.866.676.486.306.49
Payout Ratio73.76%77.01%80.26%83.50%86.75%90.00%92.50%
Projected Dividends (M)5.355.435.505.575.625.676.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.77%-2.77%-1.77%
Year 1 PV (M)4.934.985.03
Year 2 PV (M)4.534.624.72
Year 3 PV (M)4.164.294.42
Year 4 PV (M)3.813.974.13
Year 5 PV (M)3.483.673.86
PV of Terminal Value (M)60.4963.7067.05
Equity Value (M)81.4085.2389.21
Shares Outstanding (M)8.768.768.76
Fair Value$9.29$9.73$10.18
Upside / Downside-43.67%-41.02%-38.26%

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