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Columbia Banking System, Inc. (COLB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$51.69 - $137.11$79.04
Multi-Stage$36.97 - $40.31$38.61
Blended Fair Value$58.82
Current Price$25.74
Upside128.53%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.16%11.71%1.381.250.840.850.850.850.800.670.650.62
YoY Growth--11.09%48.27%-0.80%-0.67%-0.07%6.43%19.61%3.07%4.80%35.66%
Dividend Yield--5.55%6.60%3.92%2.62%1.98%3.18%2.37%1.60%1.67%2.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)478.30
(-) Cash Dividends Paid (M)301.08
(=) Cash Retained (M)177.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)95.6659.7935.87
Cash Retained (M)177.22177.22177.22
(-) Cash Required (M)-95.66-59.79-35.87
(=) Excess Retained (M)81.56117.44141.35
(/) Shares Outstanding (M)217.07217.07217.07
(=) Excess Retained per Share0.380.540.65
LTM Dividend per Share1.391.391.39
(+) Excess Retained per Share0.380.540.65
(=) Adjusted Dividend1.761.932.04
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$51.69$79.04$137.11
Upside / Downside100.81%207.06%432.69%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)478.30509.39542.50577.76615.32655.31674.97
Payout Ratio62.95%68.36%73.77%79.18%84.59%90.00%92.50%
Projected Dividends (M)301.08348.21400.19457.47520.49589.78624.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)316.17319.17322.17
Year 2 PV (M)329.95336.23342.57
Year 3 PV (M)342.47352.30362.31
Year 4 PV (M)353.80367.41381.40
Year 5 PV (M)364.02381.60399.85
PV of Terminal Value (M)6,319.336,624.566,941.47
Equity Value (M)8,025.748,381.268,749.78
Shares Outstanding (M)217.07217.07217.07
Fair Value$36.97$38.61$40.31
Upside / Downside43.64%50.01%56.60%

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