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Booz Allen Hamilton Holding Corporation (BAH)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$153.98 - $408.46$235.45
Multi-Stage$106.48 - $116.28$111.29
Blended Fair Value$173.37
Current Price$99.95
Upside73.46%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.82%2.22%2.142.021.881.671.441.170.910.820.740.64
YoY Growth--5.51%7.63%12.89%15.46%23.51%28.33%10.47%11.28%16.13%-62.80%
Dividend Yield--2.05%1.34%1.69%1.84%1.69%1.50%1.37%1.88%2.28%2.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)823.66
(-) Cash Dividends Paid (M)273.05
(=) Cash Retained (M)550.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)164.73102.9661.77
Cash Retained (M)550.61550.61550.61
(-) Cash Required (M)-164.73-102.96-61.77
(=) Excess Retained (M)385.88447.65488.83
(/) Shares Outstanding (M)125.48125.48125.48
(=) Excess Retained per Share3.083.573.90
LTM Dividend per Share2.182.182.18
(+) Excess Retained per Share3.083.573.90
(=) Adjusted Dividend5.255.746.07
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$153.98$235.45$408.46
Upside / Downside54.06%135.57%308.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)823.66877.19934.21994.931,059.601,128.481,162.33
Payout Ratio33.15%44.52%55.89%67.26%78.63%90.00%92.50%
Projected Dividends (M)273.05390.53522.13669.19833.171,015.631,075.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)354.60357.96361.32
Year 2 PV (M)430.48438.68446.96
Year 3 PV (M)500.97515.35530.00
Year 4 PV (M)566.34588.12610.52
Year 5 PV (M)626.85657.13688.57
PV of Terminal Value (M)10,882.1611,407.7811,953.50
Equity Value (M)13,361.4113,965.0214,590.88
Shares Outstanding (M)125.48125.48125.48
Fair Value$106.48$111.29$116.28
Upside / Downside6.54%11.35%16.34%

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