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Piper Sandler Companies (PIPR)

Company Dividend Discount ModelIndustry: Financial - Capital MarketsSector: Financial Services

Valuation Snapshot

Stable Growth$312.40 - $833.97$478.62
Multi-Stage$219.31 - $239.29$229.12
Blended Fair Value$353.87
Current Price$346.99
Upside1.98%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS15.68%0.00%4.134.736.035.571.582.002.641.060.000.00
YoY Growth---12.69%-21.47%8.23%252.66%-20.85%-24.52%148.89%0.00%0.00%0.00%
Dividend Yield--1.67%2.40%4.35%4.24%1.44%3.95%3.55%1.28%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)236.42
(-) Cash Dividends Paid (M)113.26
(=) Cash Retained (M)123.16
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)47.2829.5517.73
Cash Retained (M)123.16123.16123.16
(-) Cash Required (M)-47.28-29.55-17.73
(=) Excess Retained (M)75.8793.61105.43
(/) Shares Outstanding (M)17.8417.8417.84
(=) Excess Retained per Share4.255.255.91
LTM Dividend per Share6.356.356.35
(+) Excess Retained per Share4.255.255.91
(=) Adjusted Dividend10.6011.5912.26
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$312.40$478.62$833.97
Upside / Downside-9.97%37.94%140.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)236.42251.79268.16285.59304.15323.92333.64
Payout Ratio47.91%56.33%64.74%73.16%81.58%90.00%92.50%
Projected Dividends (M)113.26141.82173.62208.94248.13291.53308.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)128.80130.02131.24
Year 2 PV (M)143.19145.92148.67
Year 3 PV (M)156.50160.99165.57
Year 4 PV (M)168.78175.27181.94
Year 5 PV (M)180.08188.78197.81
PV of Terminal Value (M)3,135.453,286.893,444.13
Equity Value (M)3,912.794,087.864,269.36
Shares Outstanding (M)17.8417.8417.84
Fair Value$219.31$229.12$239.29
Upside / Downside-36.80%-33.97%-31.04%

High-Yield Dividend Screener

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