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Veritex Holdings, Inc. (VBTX)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$49.61 - $132.43$76.00
Multi-Stage$34.46 - $37.62$36.01
Blended Fair Value$56.01
Current Price$26.10
Upside114.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.22%0.00%0.790.790.770.660.620.490.000.000.000.00
YoY Growth--0.60%2.43%15.72%7.30%27.10%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.17%3.94%4.21%1.74%1.89%3.48%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)115.86
(-) Cash Dividends Paid (M)44.65
(=) Cash Retained (M)71.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.1714.488.69
Cash Retained (M)71.2171.2171.21
(-) Cash Required (M)-23.17-14.48-8.69
(=) Excess Retained (M)48.0456.7362.52
(/) Shares Outstanding (M)55.0655.0655.06
(=) Excess Retained per Share0.871.031.14
LTM Dividend per Share0.810.810.81
(+) Excess Retained per Share0.871.031.14
(=) Adjusted Dividend1.681.841.95
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$49.61$76.00$132.43
Upside / Downside90.07%191.21%407.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)115.86123.39131.41139.95149.05158.74163.50
Payout Ratio38.53%48.83%59.12%69.41%79.71%90.00%92.50%
Projected Dividends (M)44.6560.2577.6997.15118.80142.86151.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)54.7155.2355.75
Year 2 PV (M)64.0765.2966.53
Year 3 PV (M)72.7674.8576.98
Year 4 PV (M)80.8183.9287.11
Year 5 PV (M)88.2592.5196.94
PV of Terminal Value (M)1,536.531,610.751,687.80
Equity Value (M)1,897.141,982.552,071.11
Shares Outstanding (M)55.0655.0655.06
Fair Value$34.46$36.01$37.62
Upside / Downside32.02%37.96%44.12%

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