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Ohio Valley Banc Corp. (OVBC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$22.91 - $35.60$28.78
Multi-Stage$30.82 - $33.79$32.28
Blended Fair Value$30.53
Current Price$36.98
Upside-17.45%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.87%1.96%0.891.031.000.850.850.850.840.830.760.78
YoY Growth---14.25%3.20%17.47%-0.10%0.55%0.83%0.89%9.68%-2.18%6.51%
Dividend Yield--3.40%4.32%4.27%2.83%3.51%2.83%2.29%1.99%2.67%3.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11.13
(-) Cash Dividends Paid (M)3.16
(=) Cash Retained (M)7.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.231.390.83
Cash Retained (M)7.977.977.97
(-) Cash Required (M)-2.23-1.39-0.83
(=) Excess Retained (M)5.756.587.14
(/) Shares Outstanding (M)4.724.724.72
(=) Excess Retained per Share1.221.401.51
LTM Dividend per Share0.670.670.67
(+) Excess Retained per Share1.221.401.51
(=) Adjusted Dividend1.892.062.18
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.78%1.78%2.78%
Fair Value$22.91$28.78$35.60
Upside / Downside-38.04%-22.18%-3.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11.1311.3311.5311.7411.9412.1612.52
Payout Ratio28.36%40.69%53.02%65.34%77.67%90.00%92.50%
Projected Dividends (M)3.164.616.117.679.2810.9411.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.78%1.78%2.78%
Year 1 PV (M)4.184.234.27
Year 2 PV (M)5.045.145.24
Year 3 PV (M)5.745.916.08
Year 4 PV (M)6.306.556.81
Year 5 PV (M)6.747.087.44
PV of Terminal Value (M)117.41123.36129.54
Equity Value (M)145.41152.27159.38
Shares Outstanding (M)4.724.724.72
Fair Value$30.82$32.28$33.79
Upside / Downside-16.65%-12.72%-8.64%

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