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Special Opportunities Fund, Inc. (SPE)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$140.08 - $373.94$214.61
Multi-Stage$97.92 - $106.87$102.31
Blended Fair Value$158.46
Current Price$15.49
Upside922.98%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.16%0.00%1.151.101.441.930.890.741.151.050.700.00
YoY Growth--4.64%-24.19%-25.01%116.16%20.55%-35.47%9.02%49.42%0.00%0.00%
Dividend Yield--7.83%9.23%12.67%12.47%6.33%5.02%9.68%7.01%5.15%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)63.93
(-) Cash Dividends Paid (M)28.25
(=) Cash Retained (M)35.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.797.994.79
Cash Retained (M)35.6835.6835.68
(-) Cash Required (M)-12.79-7.99-4.79
(=) Excess Retained (M)22.8927.6930.88
(/) Shares Outstanding (M)10.7610.7610.76
(=) Excess Retained per Share2.132.572.87
LTM Dividend per Share2.632.632.63
(+) Excess Retained per Share2.132.572.87
(=) Adjusted Dividend4.755.205.50
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$140.08$214.61$373.94
Upside / Downside804.30%1,285.46%2,314.06%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)63.9368.0972.5177.2382.2587.5990.22
Payout Ratio44.19%53.35%62.51%71.68%80.84%90.00%92.50%
Projected Dividends (M)28.2536.3345.3355.3566.4978.8383.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)32.9933.3033.62
Year 2 PV (M)37.3938.1038.82
Year 3 PV (M)41.4642.6543.86
Year 4 PV (M)45.2246.9648.75
Year 5 PV (M)48.7051.0553.49
PV of Terminal Value (M)847.87888.82931.34
Equity Value (M)1,053.621,100.881,149.88
Shares Outstanding (M)10.7610.7610.76
Fair Value$97.92$102.31$106.87
Upside / Downside532.16%560.51%589.91%

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