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Abrdn Healthcare Investors (HQH)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$33.56 - $48.30$40.76
Multi-Stage$52.68 - $57.96$55.27
Blended Fair Value$48.01
Current Price$16.05
Upside199.15%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
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%-100.00%
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)241.28
(-) Cash Dividends Paid (M)16.78
(=) Cash Retained (M)224.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)48.2630.1618.10
Cash Retained (M)224.50224.50224.50
(-) Cash Required (M)-48.26-30.16-18.10
(=) Excess Retained (M)176.25194.34206.41
(/) Shares Outstanding (M)50.7950.7950.79
(=) Excess Retained per Share3.473.834.06
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share3.473.834.06
(=) Adjusted Dividend3.804.164.39
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$33.56$40.76$48.30
Upside / Downside109.11%153.93%200.95%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)241.28238.87236.48234.12231.77229.46236.34
Payout Ratio6.95%23.56%40.17%56.78%73.39%90.00%92.50%
Projected Dividends (M)16.7856.2895.00132.93170.10206.51218.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)51.0751.5952.11
Year 2 PV (M)78.2179.8181.44
Year 3 PV (M)99.30102.37105.51
Year 4 PV (M)115.29120.07125.00
Year 5 PV (M)127.00133.62140.50
PV of Terminal Value (M)2,204.762,319.572,439.11
Equity Value (M)2,675.642,807.032,943.66
Shares Outstanding (M)50.7950.7950.79
Fair Value$52.68$55.27$57.96
Upside / Downside228.25%244.37%261.13%

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