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Verisk Analytics, Inc. (VRSK)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$154.11 - $416.90$237.07
Multi-Stage$129.21 - $141.45$135.22
Blended Fair Value$186.15
Current Price$251.51
Upside-25.99%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.24%0.00%1.571.401.391.341.251.160.000.000.000.00
YoY Growth--12.45%0.82%3.72%7.05%7.52%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.53%0.60%0.72%0.62%0.71%0.83%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)921.40
(-) Cash Dividends Paid (M)243.30
(=) Cash Retained (M)678.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)184.28115.1869.11
Cash Retained (M)678.10678.10678.10
(-) Cash Required (M)-184.28-115.18-69.11
(=) Excess Retained (M)493.82562.93609.00
(/) Shares Outstanding (M)140.70140.70140.70
(=) Excess Retained per Share3.514.004.33
LTM Dividend per Share1.731.731.73
(+) Excess Retained per Share3.514.004.33
(=) Adjusted Dividend5.245.736.06
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate4.24%5.24%6.24%
Fair Value$154.11$237.07$416.90
Upside / Downside-38.73%-5.74%65.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)921.40969.691,020.511,074.001,130.291,189.531,225.22
Payout Ratio26.41%39.12%51.84%64.56%77.28%90.00%92.50%
Projected Dividends (M)243.30379.39529.07693.40873.501,070.581,133.33

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.78%7.78%7.78%
Growth Rate4.24%5.24%6.24%
Year 1 PV (M)348.64351.98355.33
Year 2 PV (M)446.79455.40464.10
Year 3 PV (M)538.11553.75569.68
Year 4 PV (M)622.94647.19672.14
Year 5 PV (M)701.62735.92771.55
PV of Terminal Value (M)15,522.8516,281.8417,070.23
Equity Value (M)18,180.9519,026.0919,903.04
Shares Outstanding (M)140.70140.70140.70
Fair Value$129.21$135.22$141.45
Upside / Downside-48.62%-46.24%-43.76%

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