Definitive Analysis
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Red Violet, Inc. (RDVT)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$5.48 - $7.88$6.65
Multi-Stage$8.98 - $9.86$9.41
Blended Fair Value$8.03
Current Price$49.20
Upside-83.68%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.290.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.77%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11.20
(-) Cash Dividends Paid (M)4.18
(=) Cash Retained (M)7.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.241.400.84
Cash Retained (M)7.027.027.02
(-) Cash Required (M)-2.24-1.40-0.84
(=) Excess Retained (M)4.785.626.18
(/) Shares Outstanding (M)14.4514.4514.45
(=) Excess Retained per Share0.330.390.43
LTM Dividend per Share0.290.290.29
(+) Excess Retained per Share0.330.390.43
(=) Adjusted Dividend0.620.680.72
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$5.48$6.65$7.88
Upside / Downside-88.87%-86.48%-83.98%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11.2011.0910.9810.8710.7610.6510.97
Payout Ratio37.32%47.86%58.39%68.93%79.46%90.00%92.50%
Projected Dividends (M)4.185.316.417.498.559.5910.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4.824.864.91
Year 2 PV (M)5.285.395.50
Year 3 PV (M)5.605.775.95
Year 4 PV (M)5.806.046.28
Year 5 PV (M)5.906.206.52
PV of Terminal Value (M)102.36107.69113.24
Equity Value (M)129.74135.95142.40
Shares Outstanding (M)14.4514.4514.45
Fair Value$8.98$9.41$9.86
Upside / Downside-81.75%-80.87%-79.97%

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