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Artisan Partners Asset Management Inc. (APAM)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$73.62 - $163.31$106.18
Multi-Stage$63.45 - $69.08$66.22
Blended Fair Value$86.20
Current Price$43.40
Upside98.61%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.02%7.09%2.800.003.513.592.872.662.371.851.631.75
YoY Growth--0.00%-100.00%-2.26%25.34%7.88%12.16%28.06%13.55%-6.91%24.19%
Dividend Yield--7.15%0.00%10.98%9.13%5.49%12.36%9.16%5.56%5.90%5.67%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)265.23
(-) Cash Dividends Paid (M)259.73
(=) Cash Retained (M)5.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.0533.1519.89
Cash Retained (M)5.505.505.50
(-) Cash Required (M)-53.05-33.15-19.89
(=) Excess Retained (M)-47.55-27.65-14.39
(/) Shares Outstanding (M)70.8370.8370.83
(=) Excess Retained per Share-0.67-0.39-0.20
LTM Dividend per Share3.673.673.67
(+) Excess Retained per Share-0.67-0.39-0.20
(=) Adjusted Dividend3.003.283.46
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.83%5.83%6.83%
Fair Value$73.62$106.18$163.31
Upside / Downside69.63%144.65%276.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)265.23280.70297.07314.39332.73352.13362.69
Payout Ratio97.93%96.34%94.76%93.17%91.59%90.00%92.50%
Projected Dividends (M)259.73270.42281.49292.92304.73316.92335.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.83%5.83%6.83%
Year 1 PV (M)245.53247.87250.22
Year 2 PV (M)232.05236.50240.99
Year 3 PV (M)219.24225.58232.03
Year 4 PV (M)207.09215.10223.35
Year 5 PV (M)195.54205.05214.92
PV of Terminal Value (M)3,394.653,559.673,731.06
Equity Value (M)4,494.104,689.774,892.56
Shares Outstanding (M)70.8370.8370.83
Fair Value$63.45$66.22$69.08
Upside / Downside46.21%52.57%59.17%

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