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Artisan Partners Asset Management Inc. (APAM)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$73.93 - $164.62$106.77
Multi-Stage$63.64 - $69.29$66.41
Blended Fair Value$86.59
Current Price$43.40
Upside99.52%
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 Rate9.08%9.08%9.08%
Growth Rate4.83%5.83%6.83%
Fair Value$73.93$106.77$164.62
Upside / Downside70.35%146.01%279.30%

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 Rate9.08%9.08%9.08%
Growth Rate4.83%5.83%6.83%
Year 1 PV (M)245.57247.91250.26
Year 2 PV (M)232.12236.57241.07
Year 3 PV (M)219.35225.69232.15
Year 4 PV (M)207.22215.24223.50
Year 5 PV (M)195.71205.22215.10
PV of Terminal Value (M)3,407.513,573.163,745.19
Equity Value (M)4,507.484,703.804,907.26
Shares Outstanding (M)70.8370.8370.83
Fair Value$63.64$66.41$69.29
Upside / Downside46.64%53.03%59.65%

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