Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Despegar.com, Corp. (DESP)

Company Dividend Discount ModelIndustry: Travel ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$3.07 - $4.72$3.84
Multi-Stage$6.96 - $7.65$7.30
Blended Fair Value$5.57
Current Price$19.25
Upside-71.08%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.280.000.000.000.010.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.48%0.00%0.00%0.00%0.05%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)27.91
(-) Cash Dividends Paid (M)23.81
(=) Cash Retained (M)4.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.583.492.09
Cash Retained (M)4.104.104.10
(-) Cash Required (M)-5.58-3.49-2.09
(=) Excess Retained (M)-1.490.612.00
(/) Shares Outstanding (M)82.2682.2682.26
(=) Excess Retained per Share-0.020.010.02
LTM Dividend per Share0.290.290.29
(+) Excess Retained per Share-0.020.010.02
(=) Adjusted Dividend0.270.300.31
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.07$3.84$4.72
Upside / Downside-84.04%-80.06%-75.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)27.9127.6327.3527.0826.8126.5427.33
Payout Ratio85.32%86.26%87.19%88.13%89.06%90.00%92.50%
Projected Dividends (M)23.8123.8323.8523.8623.8723.8825.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)22.1222.3422.57
Year 2 PV (M)20.5420.9621.39
Year 3 PV (M)19.0819.6720.27
Year 4 PV (M)17.7218.4519.21
Year 5 PV (M)16.4517.3118.20
PV of Terminal Value (M)476.62501.44527.28
Equity Value (M)572.53600.18628.92
Shares Outstanding (M)82.2682.2682.26
Fair Value$6.96$7.30$7.65
Upside / Downside-63.85%-62.10%-60.29%

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