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First United Corporation (FUNC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$89.97 - $238.67$137.58
Multi-Stage$61.48 - $67.18$64.28
Blended Fair Value$100.93
Current Price$36.77
Upside174.48%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.45%0.00%0.830.800.610.600.560.480.290.000.000.00
YoY Growth--2.99%30.88%2.44%6.72%16.67%63.53%0.00%0.00%0.00%0.00%
Dividend Yield--2.75%3.52%3.64%2.66%3.18%3.37%1.70%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)24.92
(-) Cash Dividends Paid (M)5.70
(=) Cash Retained (M)19.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.983.121.87
Cash Retained (M)19.2219.2219.22
(-) Cash Required (M)-4.98-3.12-1.87
(=) Excess Retained (M)14.2416.1117.35
(/) Shares Outstanding (M)6.506.506.50
(=) Excess Retained per Share2.192.482.67
LTM Dividend per Share0.880.880.88
(+) Excess Retained per Share2.192.482.67
(=) Adjusted Dividend3.073.363.55
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$89.97$137.58$238.67
Upside / Downside144.69%274.15%549.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)24.9226.5428.2730.1132.0634.1535.17
Payout Ratio22.87%36.30%49.72%63.15%76.57%90.00%92.50%
Projected Dividends (M)5.709.6314.0619.0124.5530.7332.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)8.758.838.91
Year 2 PV (M)11.5911.8112.03
Year 3 PV (M)14.2314.6415.06
Year 4 PV (M)16.6917.3317.99
Year 5 PV (M)18.9719.8820.84
PV of Terminal Value (M)329.30345.20361.72
Equity Value (M)399.52417.70436.55
Shares Outstanding (M)6.506.506.50
Fair Value$61.48$64.28$67.18
Upside / Downside67.21%74.81%82.70%

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