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Eagle Bancorp Montana, Inc. (EBMT)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$40.54 - $107.55$61.99
Multi-Stage$28.06 - $30.64$29.32
Blended Fair Value$45.66
Current Price$17.27
Upside164.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.51%14.72%0.580.570.520.390.330.310.250.180.150.15
YoY Growth--2.09%9.38%34.56%15.41%8.64%20.65%42.09%17.69%2.49%1.31%
Dividend Yield--3.45%4.44%3.67%1.73%1.37%1.90%1.51%0.86%0.77%1.22%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.54
(-) Cash Dividends Paid (M)4.57
(=) Cash Retained (M)8.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.711.691.02
Cash Retained (M)8.978.978.97
(-) Cash Required (M)-2.71-1.69-1.02
(=) Excess Retained (M)6.267.287.95
(/) Shares Outstanding (M)7.837.837.83
(=) Excess Retained per Share0.800.931.02
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.800.931.02
(=) Adjusted Dividend1.381.511.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$40.54$61.99$107.55
Upside / Downside134.76%258.97%522.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.5414.4215.3616.3517.4218.5519.11
Payout Ratio33.76%45.01%56.26%67.50%78.75%90.00%92.50%
Projected Dividends (M)4.576.498.6411.0413.7216.6917.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5.895.956.00
Year 2 PV (M)7.127.267.40
Year 3 PV (M)8.268.508.74
Year 4 PV (M)9.329.6810.05
Year 5 PV (M)10.3010.8011.32
PV of Terminal Value (M)178.88187.52196.49
Equity Value (M)219.79229.71240.00
Shares Outstanding (M)7.837.837.83
Fair Value$28.06$29.32$30.64
Upside / Downside62.46%69.80%77.40%

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