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Townsquare Media, Inc. (TSQ)

Company Dividend Discount ModelIndustry: Advertising AgenciesSector: Communication Services

Valuation Snapshot

Stable Growth$8.58 - $12.59$10.51
Multi-Stage$13.99 - $15.31$14.64
Blended Fair Value$12.58
Current Price$6.72
Upside87.14%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.26%0.00%0.750.570.000.000.250.500.370.000.000.00
YoY Growth--31.76%0.00%-100.00%-98.57%-49.25%33.97%0.00%0.00%0.00%0.00%
Dividend Yield--9.16%4.85%0.00%0.03%2.37%10.88%6.40%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)18.24
(-) Cash Dividends Paid (M)12.87
(=) Cash Retained (M)5.37
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.652.281.37
Cash Retained (M)5.375.375.37
(-) Cash Required (M)-3.65-2.28-1.37
(=) Excess Retained (M)1.723.094.00
(/) Shares Outstanding (M)16.5116.5116.51
(=) Excess Retained per Share0.100.190.24
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share0.100.190.24
(=) Adjusted Dividend0.880.971.02
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.11%-0.11%0.89%
Fair Value$8.58$10.51$12.59
Upside / Downside27.69%56.43%87.42%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)18.2418.2218.2018.1818.1618.1418.69
Payout Ratio70.58%74.46%78.35%82.23%86.12%90.00%92.50%
Projected Dividends (M)12.8713.5714.2614.9515.6416.3317.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.11%-0.11%0.89%
Year 1 PV (M)12.3112.4412.56
Year 2 PV (M)11.7511.9812.23
Year 3 PV (M)11.1811.5211.87
Year 4 PV (M)10.6111.0511.50
Year 5 PV (M)10.0510.5711.11
PV of Terminal Value (M)175.05184.08193.48
Equity Value (M)230.95241.64252.75
Shares Outstanding (M)16.5116.5116.51
Fair Value$13.99$14.64$15.31
Upside / Downside108.22%117.86%127.87%

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