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KKR Group Finance Co. IX LLC 4. (KKRS)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$151.01 - $400.58$230.90
Multi-Stage$101.35 - $110.85$106.01
Blended Fair Value$168.46
Current Price$18.26
Upside822.56%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.96%-2.46%0.660.660.550.450.380.330.380.370.330.76
YoY Growth---0.48%19.81%22.33%18.58%16.08%-14.30%3.00%12.25%-56.46%-9.99%
Dividend Yield--3.69%3.30%2.98%2.05%1.47%1.27%1.48%1.43%1.28%2.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,000.01
(-) Cash Dividends Paid (M)456.76
(=) Cash Retained (M)5,543.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,200.00750.00450.00
Cash Retained (M)5,543.255,543.255,543.25
(-) Cash Required (M)-1,200.00-750.00-450.00
(=) Excess Retained (M)4,343.254,793.255,093.25
(/) Shares Outstanding (M)932.05932.05932.05
(=) Excess Retained per Share4.665.145.46
LTM Dividend per Share0.490.490.49
(+) Excess Retained per Share4.665.145.46
(=) Adjusted Dividend5.155.635.95
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$151.01$230.90$400.58
Upside / Downside726.98%1,164.54%2,093.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,000.016,390.016,805.367,247.717,718.818,220.548,467.15
Payout Ratio7.61%24.09%40.57%57.05%73.52%90.00%92.50%
Projected Dividends (M)456.761,539.362,760.774,134.465,675.077,398.487,832.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,397.741,410.991,424.24
Year 2 PV (M)2,276.162,319.522,363.28
Year 3 PV (M)3,095.123,183.973,274.50
Year 4 PV (M)3,857.584,005.944,158.53
Year 5 PV (M)4,566.394,786.955,015.95
PV of Terminal Value (M)79,272.4183,101.3087,076.73
Equity Value (M)94,465.4198,808.66103,313.23
Shares Outstanding (M)932.05932.05932.05
Fair Value$101.35$106.01$110.85
Upside / Downside455.05%480.57%507.04%

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