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Tiptree Inc. (TIPT)

Company Dividend Discount ModelIndustry: Insurance - SpecialtySector: Financial Services

Valuation Snapshot

Stable Growth$30.96 - $82.66$47.44
Multi-Stage$21.77 - $23.75$22.74
Blended Fair Value$35.09
Current Price$19.17
Upside83.04%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS35.16%0.00%0.640.360.200.140.140.140.120.090.080.09
YoY Growth--80.74%76.60%43.74%-2.82%1.16%15.08%36.64%9.65%-3.68%0.00%
Dividend Yield--2.68%2.08%1.39%1.09%1.62%2.74%1.96%1.43%1.14%1.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)50.57
(-) Cash Dividends Paid (M)24.83
(=) Cash Retained (M)25.74
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.116.323.79
Cash Retained (M)25.7425.7425.74
(-) Cash Required (M)-10.11-6.32-3.79
(=) Excess Retained (M)15.6319.4221.95
(/) Shares Outstanding (M)38.5038.5038.50
(=) Excess Retained per Share0.410.500.57
LTM Dividend per Share0.640.640.64
(+) Excess Retained per Share0.410.500.57
(=) Adjusted Dividend1.051.151.21
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$30.96$47.44$82.66
Upside / Downside61.52%147.46%331.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)50.5753.8557.3561.0865.0569.2871.36
Payout Ratio49.10%57.28%65.46%73.64%81.82%90.00%92.50%
Projected Dividends (M)24.8330.8537.5444.9853.2362.3566.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)28.0128.2828.54
Year 2 PV (M)30.9631.5532.15
Year 3 PV (M)33.6934.6635.64
Year 4 PV (M)36.2037.6039.03
Year 5 PV (M)38.5240.3842.31
PV of Terminal Value (M)670.62703.02736.65
Equity Value (M)838.01875.48914.32
Shares Outstanding (M)38.5038.5038.50
Fair Value$21.77$22.74$23.75
Upside / Downside13.54%18.62%23.88%

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