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Fortress Biotech, Inc. (FBIO)

Company Dividend Discount ModelIndustry: BiotechnologySector: Healthcare

Valuation Snapshot

Stable Growth$1.03 - $1.48$1.25
Multi-Stage$1.64 - $1.80$1.72
Blended Fair Value$1.48
Current Price$3.70
Upside-59.95%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.030.030.030.030.010.000.000.000.000.00
YoY Growth---5.71%-1.74%0.00%216.03%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.62%1.35%0.22%0.13%0.02%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)3.99
(-) Cash Dividends Paid (M)0.66
(=) Cash Retained (M)3.32
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.800.500.30
Cash Retained (M)3.323.323.32
(-) Cash Required (M)-0.80-0.50-0.30
(=) Excess Retained (M)2.532.823.02
(/) Shares Outstanding (M)27.4027.4027.40
(=) Excess Retained per Share0.090.100.11
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.090.100.11
(=) Adjusted Dividend0.120.130.13
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.03$1.25$1.48
Upside / Downside-72.22%-66.27%-60.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.993.953.913.873.833.793.91
Payout Ratio16.65%31.32%45.99%60.66%75.33%90.00%92.50%
Projected Dividends (M)0.661.241.802.352.893.413.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1.121.131.14
Year 2 PV (M)1.481.511.54
Year 3 PV (M)1.751.811.86
Year 4 PV (M)1.962.042.12
Year 5 PV (M)2.102.212.32
PV of Terminal Value (M)36.4338.3340.30
Equity Value (M)44.8447.0249.29
Shares Outstanding (M)27.4027.4027.40
Fair Value$1.64$1.72$1.80
Upside / Downside-55.78%-53.62%-51.38%

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