Definitive Analysis
Definitive Analysis
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Barings Participation Investors (MPV)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$32.15 - $51.09$40.77
Multi-Stage$44.66 - $48.72$46.65
Blended Fair Value$43.71
Current Price$20.11
Upside117.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.23%3.35%1.441.170.810.790.861.071.061.051.051.04
YoY Growth--23.23%43.90%2.50%-8.01%-19.09%0.63%0.68%0.62%0.36%0.44%
Dividend Yield--8.45%7.51%6.61%5.37%7.27%6.62%7.05%7.34%7.38%7.59%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)32.78
(-) Cash Dividends Paid (M)31.39
(=) Cash Retained (M)1.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.564.102.46
Cash Retained (M)1.381.381.38
(-) Cash Required (M)-6.56-4.10-2.46
(=) Excess Retained (M)-5.17-2.71-1.07
(/) Shares Outstanding (M)10.6710.6710.67
(=) Excess Retained per Share-0.48-0.25-0.10
LTM Dividend per Share2.942.942.94
(+) Excess Retained per Share-0.48-0.25-0.10
(=) Adjusted Dividend2.462.692.84
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.35%2.35%3.35%
Fair Value$32.15$40.77$51.09
Upside / Downside59.86%102.74%154.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)32.7833.5534.3435.1435.9736.8237.92
Payout Ratio95.78%94.62%93.47%92.31%91.16%90.00%92.50%
Projected Dividends (M)31.3931.7432.0932.4432.7933.1335.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.35%2.35%3.35%
Year 1 PV (M)28.8129.1029.38
Year 2 PV (M)26.4426.9627.49
Year 3 PV (M)24.2624.9825.72
Year 4 PV (M)22.2523.1524.06
Year 5 PV (M)20.4121.4422.51
PV of Terminal Value (M)354.35372.17390.71
Equity Value (M)476.52497.80519.88
Shares Outstanding (M)10.6710.6710.67
Fair Value$44.66$46.65$48.72
Upside / Downside122.06%131.97%142.26%

High-Yield Dividend Screener

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