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Independent Bank Corp. (INDB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$149.50 - $396.58$228.60
Multi-Stage$103.71 - $113.24$108.39
Blended Fair Value$168.49
Current Price$69.17
Upside143.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.55%15.67%2.232.272.171.451.411.230.930.790.690.61
YoY Growth---1.84%4.56%49.41%3.12%14.20%32.63%17.98%14.59%13.52%16.62%
Dividend Yield--3.55%4.47%3.31%1.78%1.67%1.92%1.11%1.10%1.06%1.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)275.35
(-) Cash Dividends Paid (M)98.73
(=) Cash Retained (M)176.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.0734.4220.65
Cash Retained (M)176.62176.62176.62
(-) Cash Required (M)-55.07-34.42-20.65
(=) Excess Retained (M)121.55142.20155.97
(/) Shares Outstanding (M)43.2043.2043.20
(=) Excess Retained per Share2.813.293.61
LTM Dividend per Share2.292.292.29
(+) Excess Retained per Share2.813.293.61
(=) Adjusted Dividend5.105.585.90
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$149.50$228.60$396.58
Upside / Downside116.14%230.49%473.35%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)275.35293.24312.30332.60354.22377.25388.57
Payout Ratio35.86%46.69%57.51%68.34%79.17%90.00%92.50%
Projected Dividends (M)98.73136.90179.62227.31280.44339.52359.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)124.31125.49126.66
Year 2 PV (M)148.09150.91153.76
Year 3 PV (M)170.17175.05180.03
Year 4 PV (M)190.63197.96205.50
Year 5 PV (M)209.56219.68230.19
PV of Terminal Value (M)3,637.883,813.593,996.03
Equity Value (M)4,480.634,682.684,892.17
Shares Outstanding (M)43.2043.2043.20
Fair Value$103.71$108.39$113.24
Upside / Downside49.94%56.70%63.71%

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