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Eagle Bancorp Montana, Inc. (EBMT)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$40.75 - $108.77$62.43
Multi-Stage$28.15 - $30.74$29.42
Blended Fair Value$45.92
Current Price$17.27
Upside165.91%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.51%14.72%0.580.570.520.390.330.310.250.180.150.15
YoY Growth--2.09%9.38%34.56%15.41%8.64%20.65%42.09%17.69%2.49%1.31%
Dividend Yield--3.45%4.44%3.67%1.73%1.37%1.90%1.51%0.86%0.77%1.22%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.54
(-) Cash Dividends Paid (M)4.57
(=) Cash Retained (M)8.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.711.691.02
Cash Retained (M)8.978.978.97
(-) Cash Required (M)-2.71-1.69-1.02
(=) Excess Retained (M)6.267.287.95
(/) Shares Outstanding (M)7.837.837.83
(=) Excess Retained per Share0.800.931.02
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.800.931.02
(=) Adjusted Dividend1.381.511.60
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$40.75$62.43$108.77
Upside / Downside135.94%261.47%529.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.5414.4215.3616.3517.4218.5519.11
Payout Ratio33.76%45.01%56.26%67.50%78.75%90.00%92.50%
Projected Dividends (M)4.576.498.6411.0413.7216.6917.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5.895.956.01
Year 2 PV (M)7.127.267.40
Year 3 PV (M)8.278.518.75
Year 4 PV (M)9.339.6910.06
Year 5 PV (M)10.3110.8111.33
PV of Terminal Value (M)179.56188.23197.23
Equity Value (M)220.49230.44240.77
Shares Outstanding (M)7.837.837.83
Fair Value$28.15$29.42$30.74
Upside / Downside62.98%70.34%77.97%

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