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Canoe EIT Income Fund (EIT-UN.TO)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$313.74 - $977.78$916.32
Multi-Stage$131.88 - $144.28$137.97
Blended Fair Value$527.14
Current Price$15.57
Upside3,285.63%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.06%22.97%1.201.131.020.880.800.620.100.120.160.18
YoY Growth--6.00%10.84%16.03%9.36%29.50%495.68%-13.53%-24.33%-9.41%16.03%
Dividend Yield--7.88%8.74%7.62%6.63%8.16%5.96%1.01%1.02%1.33%1.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)878.43
(-) Cash Dividends Paid (M)371.94
(=) Cash Retained (M)506.49
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)175.69109.8065.88
Cash Retained (M)506.49506.49506.49
(-) Cash Required (M)-175.69-109.80-65.88
(=) Excess Retained (M)330.80396.68440.61
(/) Shares Outstanding (M)178.67178.67178.67
(=) Excess Retained per Share1.852.222.47
LTM Dividend per Share2.082.082.08
(+) Excess Retained per Share1.852.222.47
(=) Adjusted Dividend3.934.304.55
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Fair Value$313.74$916.32$977.78
Upside / Downside1,915.01%5,785.15%6,179.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)878.43935.53996.331,061.101,130.071,203.521,239.63
Payout Ratio42.34%51.87%61.40%70.94%80.47%90.00%92.50%
Projected Dividends (M)371.94485.29611.80752.71909.351,083.171,146.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)450.03454.29458.56
Year 2 PV (M)526.12536.14546.26
Year 3 PV (M)600.27617.50635.06
Year 4 PV (M)672.49698.36724.96
Year 5 PV (M)742.84778.72815.97
PV of Terminal Value (M)20,571.6921,565.3222,596.96
Equity Value (M)23,563.4424,650.3225,777.77
Shares Outstanding (M)178.67178.67178.67
Fair Value$131.88$137.97$144.28
Upside / Downside747.04%786.11%826.64%

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