Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

The Merchants Trust Plc (MRCH.L)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$16.50 - $33.10$22.95
Multi-Stage$16.77 - $18.32$17.53
Blended Fair Value$20.24
Current Price$5.50
Upside268.06%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.86%5.57%0.290.270.240.230.210.200.190.180.180.18
YoY Growth--4.77%12.11%8.19%5.98%8.41%5.59%3.67%2.08%0.00%5.36%
Dividend Yield--5.17%5.06%4.14%3.95%4.88%3.70%3.96%3.69%3.89%4.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)142.89
(-) Cash Dividends Paid (M)85.19
(=) Cash Retained (M)57.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)28.5817.8610.72
Cash Retained (M)57.7157.7157.71
(-) Cash Required (M)-28.58-17.86-10.72
(=) Excess Retained (M)29.1339.8546.99
(/) Shares Outstanding (M)148.04148.04148.04
(=) Excess Retained per Share0.200.270.32
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.200.270.32
(=) Adjusted Dividend0.770.840.89
WACC / Discount Rate8.41%8.41%8.41%
Growth Rate3.57%4.57%5.57%
Fair Value$16.50$22.95$33.10
Upside / Downside199.96%317.34%501.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)142.89149.42156.24163.38170.84178.65184.01
Payout Ratio59.61%65.69%71.77%77.85%83.92%90.00%92.50%
Projected Dividends (M)85.1998.16112.14127.19143.38160.78170.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.41%8.41%8.41%
Growth Rate3.57%4.57%5.57%
Year 1 PV (M)89.6790.5491.40
Year 2 PV (M)93.5995.4097.24
Year 3 PV (M)96.9799.81102.70
Year 4 PV (M)99.87103.78107.81
Year 5 PV (M)102.31107.35112.58
PV of Terminal Value (M)2,000.202,098.642,200.93
Equity Value (M)2,482.612,595.532,712.66
Shares Outstanding (M)148.04148.04148.04
Fair Value$16.77$17.53$18.32
Upside / Downside204.91%218.78%233.17%

High-Yield Dividend Screener

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