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Life & Banc Split Corp. (LBS.TO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$75.18 - $129.24$98.51
Multi-Stage$117.99 - $129.51$123.64
Blended Fair Value$111.07
Current Price$9.58
Upside1,059.44%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.53%11.30%1.211.060.900.810.250.730.640.520.500.46
YoY Growth--13.99%18.27%11.01%226.39%-66.23%15.39%22.29%3.60%9.06%10.92%
Dividend Yield--13.43%13.50%10.41%8.03%3.45%9.22%9.54%5.23%5.17%5.73%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)260.12
(-) Cash Dividends Paid (M)104.86
(=) Cash Retained (M)155.26
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)52.0232.5119.51
Cash Retained (M)155.26155.26155.26
(-) Cash Required (M)-52.02-32.51-19.51
(=) Excess Retained (M)103.24122.74135.75
(/) Shares Outstanding (M)43.8043.8043.80
(=) Excess Retained per Share2.362.803.10
LTM Dividend per Share2.392.392.39
(+) Excess Retained per Share2.362.803.10
(=) Adjusted Dividend4.755.205.49
WACC / Discount Rate7.13%7.13%7.13%
Growth Rate0.76%1.76%2.76%
Fair Value$75.18$98.51$129.24
Upside / Downside684.72%928.28%1,249.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)260.12264.70269.35274.09278.92283.83292.34
Payout Ratio40.31%50.25%60.19%70.12%80.06%90.00%92.50%
Projected Dividends (M)104.86133.01162.12192.21223.31255.44270.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.13%7.13%7.13%
Growth Rate0.76%1.76%2.76%
Year 1 PV (M)122.94124.16125.38
Year 2 PV (M)138.50141.26144.05
Year 3 PV (M)151.77156.34160.99
Year 4 PV (M)162.98169.55176.31
Year 5 PV (M)172.32181.04190.12
PV of Terminal Value (M)4,419.324,643.014,875.67
Equity Value (M)5,167.835,415.365,672.52
Shares Outstanding (M)43.8043.8043.80
Fair Value$117.99$123.64$129.51
Upside / Downside1,131.61%1,190.60%1,251.89%

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