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Cadence Opportunities Fund Limited (CDO.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$2.09 - $3.16$2.60
Multi-Stage$4.38 - $4.81$4.59
Blended Fair Value$3.59
Current Price$1.70
Upside111.34%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS0.00%0.00%0.080.090.090.090.020.000.000.000.000.00
YoY Growth---14.57%-0.99%10.37%332.55%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.70%5.44%5.19%3.57%0.66%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3.83
(-) Cash Dividends Paid (M)2.73
(=) Cash Retained (M)1.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.770.480.29
Cash Retained (M)1.111.111.11
(-) Cash Required (M)-0.77-0.48-0.29
(=) Excess Retained (M)0.340.630.82
(/) Shares Outstanding (M)15.7215.7215.72
(=) Excess Retained per Share0.020.040.05
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.020.040.05
(=) Adjusted Dividend0.200.210.23
WACC / Discount Rate7.13%7.13%7.13%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.09$2.60$3.16
Upside / Downside23.21%52.88%86.16%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.833.793.763.723.683.643.75
Payout Ratio71.14%74.91%78.68%82.45%86.23%90.00%92.50%
Projected Dividends (M)2.732.842.963.073.173.283.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.13%7.13%7.13%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)2.632.652.68
Year 2 PV (M)2.522.582.63
Year 3 PV (M)2.422.492.57
Year 4 PV (M)2.312.412.51
Year 5 PV (M)2.212.322.44
PV of Terminal Value (M)56.6759.6262.69
Equity Value (M)68.7672.0875.52
Shares Outstanding (M)15.7215.7215.72
Fair Value$4.38$4.59$4.81
Upside / Downside157.38%169.79%182.69%

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