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Associated Banc-Corp (ASB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$19.05 - $39.12$26.73
Multi-Stage$17.66 - $19.24$18.43
Blended Fair Value$22.58
Current Price$25.71
Upside-12.16%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.48%9.02%0.850.790.750.710.680.680.640.460.410.38
YoY Growth--7.46%5.20%6.10%3.60%0.20%5.96%38.08%12.62%8.74%6.29%
Dividend Yield--3.76%3.71%4.17%3.10%3.19%5.32%2.91%1.87%1.69%2.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.03
(-) Cash Dividends Paid (M)154.13
(=) Cash Retained (M)21.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2122.0013.20
Cash Retained (M)21.9021.9021.90
(-) Cash Required (M)-35.21-22.00-13.20
(=) Excess Retained (M)-13.30-0.108.70
(/) Shares Outstanding (M)164.34164.34164.34
(=) Excess Retained per Share-0.080.000.05
LTM Dividend per Share0.940.940.94
(+) Excess Retained per Share-0.080.000.05
(=) Adjusted Dividend0.860.940.99
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.39%5.39%6.39%
Fair Value$19.05$26.73$39.12
Upside / Downside-25.89%3.98%52.15%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.03185.51195.50206.03217.13228.82235.69
Payout Ratio87.56%88.05%88.53%89.02%89.51%90.00%92.50%
Projected Dividends (M)154.13163.34173.09183.42194.35205.94218.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.39%5.39%6.39%
Year 1 PV (M)148.32149.74151.16
Year 2 PV (M)142.72145.47148.25
Year 3 PV (M)137.33141.32145.38
Year 4 PV (M)132.15137.28142.57
Year 5 PV (M)127.15133.36139.80
PV of Terminal Value (M)2,213.822,321.922,434.19
Equity Value (M)2,901.493,029.093,161.35
Shares Outstanding (M)164.34164.34164.34
Fair Value$17.66$18.43$19.24
Upside / Downside-31.33%-28.31%-25.18%

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