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Figure Technology Solutions, Inc. Class A Common Stock (FIGR)

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

Valuation Snapshot

Stable Growth$1.95 - $2.81$2.37
Multi-Stage$3.04 - $3.35$3.19
Blended Fair Value$2.78
Current Price$36.37
Upside-92.35%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023
DPS0.00%0.00%0.010.000.000.000.000.000.000.000.000.00
YoY Growth--713.62%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.02%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)133.04
(-) Cash Dividends Paid (M)2.95
(=) Cash Retained (M)130.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.6116.639.98
Cash Retained (M)130.09130.09130.09
(-) Cash Required (M)-26.61-16.63-9.98
(=) Excess Retained (M)103.48113.46120.11
(/) Shares Outstanding (M)481.19481.19481.19
(=) Excess Retained per Share0.220.240.25
LTM Dividend per Share0.010.010.01
(+) Excess Retained per Share0.220.240.25
(=) Adjusted Dividend0.220.240.26
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.95$2.37$2.81
Upside / Downside-94.63%-93.48%-92.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)133.04131.71130.39129.09127.80126.52130.32
Payout Ratio2.22%19.77%37.33%54.89%72.44%90.00%92.50%
Projected Dividends (M)2.9526.0448.6870.8592.58113.87120.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)23.6323.8724.11
Year 2 PV (M)40.0740.9041.73
Year 3 PV (M)52.9354.5656.23
Year 4 PV (M)62.7565.3568.03
Year 5 PV (M)70.0373.6777.47
PV of Terminal Value (M)1,215.681,278.991,344.90
Equity Value (M)1,465.091,537.341,612.48
Shares Outstanding (M)481.19481.19481.19
Fair Value$3.04$3.19$3.35
Upside / Downside-91.63%-91.22%-90.79%

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