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Value Line Small Cap Opportunities Fund, Inc. Investor Class (VLEOX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.49 - $18.92$15.52
Multi-Stage$18.47 - $20.21$19.33
Blended Fair Value$17.42
Current Price$51.58
Upside-66.22%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%4.78%0.730.650.620.600.000.000.510.480.450.46
YoY Growth--12.68%4.18%4.45%0.00%0.00%-100.00%7.28%4.74%-0.36%-0.44%
Dividend Yield--1.47%1.41%1.11%1.35%0.00%0.00%1.03%1.06%0.91%0.99%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)18.27
(-) Cash Dividends Paid (M)10.28
(=) Cash Retained (M)7.98
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.652.281.37
Cash Retained (M)7.987.987.98
(-) Cash Required (M)-3.65-2.28-1.37
(=) Excess Retained (M)4.335.706.61
(/) Shares Outstanding (M)12.9612.9612.96
(=) Excess Retained per Share0.330.440.51
LTM Dividend per Share0.790.790.79
(+) Excess Retained per Share0.330.440.51
(=) Adjusted Dividend1.131.231.30
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.05%1.05%2.05%
Fair Value$12.49$15.52$18.92
Upside / Downside-75.78%-69.91%-63.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)18.2718.4618.6518.8519.0419.2419.82
Payout Ratio56.29%63.03%69.78%76.52%83.26%90.00%92.50%
Projected Dividends (M)10.2811.6313.0114.4215.8517.3218.33

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.05%1.05%2.05%
Year 1 PV (M)10.5610.6710.77
Year 2 PV (M)10.7210.9411.15
Year 3 PV (M)10.7811.1111.44
Year 4 PV (M)10.7611.2011.65
Year 5 PV (M)10.6711.2111.78
PV of Terminal Value (M)185.79195.26205.12
Equity Value (M)239.29250.39261.91
Shares Outstanding (M)12.9612.9612.96
Fair Value$18.47$19.33$20.21
Upside / Downside-64.19%-62.53%-60.81%

High-Yield Dividend Screener

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