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AMG Funds - AMG Yacktman Focused Fund (YAFIX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$8.48 - $13.53$10.77
Multi-Stage$10.73 - $11.75$11.23
Blended Fair Value$11.00
Current Price$20.10
Upside-45.27%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%0.00%0.220.160.060.080.130.000.070.060.020.00
YoY Growth--41.88%161.71%-20.13%-43.05%0.00%-100.00%22.96%141.16%0.00%0.00%
Dividend Yield--1.11%0.84%0.29%0.37%0.92%0.00%0.36%0.28%0.12%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)101.32
(-) Cash Dividends Paid (M)28.21
(=) Cash Retained (M)73.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.2612.677.60
Cash Retained (M)73.1173.1173.11
(-) Cash Required (M)-20.26-12.67-7.60
(=) Excess Retained (M)52.8460.4465.51
(/) Shares Outstanding (M)126.79126.79126.79
(=) Excess Retained per Share0.420.480.52
LTM Dividend per Share0.220.220.22
(+) Excess Retained per Share0.420.480.52
(=) Adjusted Dividend0.640.700.74
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.45%2.45%3.45%
Fair Value$8.48$10.77$13.53
Upside / Downside-57.82%-46.41%-32.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)101.32103.80106.34108.94111.61114.34117.77
Payout Ratio27.84%40.28%52.71%65.14%77.57%90.00%92.50%
Projected Dividends (M)28.2141.8156.0570.9686.57102.91108.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.45%2.45%3.45%
Year 1 PV (M)37.9538.3238.69
Year 2 PV (M)46.1847.0948.01
Year 3 PV (M)53.0654.6556.27
Year 4 PV (M)58.7661.1163.53
Year 5 PV (M)63.4066.5869.90
PV of Terminal Value (M)1,100.561,155.881,213.41
Equity Value (M)1,359.901,423.641,489.81
Shares Outstanding (M)126.79126.79126.79
Fair Value$10.73$11.23$11.75
Upside / Downside-46.64%-44.14%-41.54%

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