Definitive Analysis
Definitive Analysis

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KKR & Co. Inc. (KKR)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$36.75 - $66.37$49.11
Multi-Stage$29.06 - $31.68$30.34
Blended Fair Value$39.73
Current Price$129.95
Upside-69.43%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.66%-2.46%0.650.600.470.350.320.290.340.330.300.75
YoY Growth--8.66%26.77%34.07%11.47%9.52%-15.78%3.32%9.31%-59.61%-9.99%
Dividend Yield--0.56%0.60%0.90%0.60%0.65%1.23%1.42%1.64%1.67%5.13%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,350.11
(-) Cash Dividends Paid (M)678.24
(=) Cash Retained (M)1,671.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)470.02293.76176.26
Cash Retained (M)1,671.871,671.871,671.87
(-) Cash Required (M)-470.02-293.76-176.26
(=) Excess Retained (M)1,201.851,378.101,495.61
(/) Shares Outstanding (M)938.23938.23938.23
(=) Excess Retained per Share1.281.471.59
LTM Dividend per Share0.720.720.72
(+) Excess Retained per Share1.281.471.59
(=) Adjusted Dividend2.002.192.32
WACC / Discount Rate11.25%11.25%11.25%
Growth Rate5.50%6.50%7.50%
Fair Value$36.75$49.11$66.37
Upside / Downside-71.72%-62.21%-48.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,350.112,502.872,665.552,838.823,023.343,219.863,316.45
Payout Ratio28.86%41.09%53.32%65.54%77.77%90.00%92.50%
Projected Dividends (M)678.241,028.381,421.171,860.672,351.312,897.873,067.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate11.25%11.25%11.25%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)915.68924.36933.04
Year 2 PV (M)1,126.751,148.211,169.88
Year 3 PV (M)1,313.551,351.251,389.68
Year 4 PV (M)1,478.011,534.851,593.31
Year 5 PV (M)1,621.951,700.291,781.63
PV of Terminal Value (M)20,805.1221,810.0122,853.36
Equity Value (M)27,261.0628,468.9829,720.90
Shares Outstanding (M)938.23938.23938.23
Fair Value$29.06$30.34$31.68
Upside / Downside-77.64%-76.65%-75.62%

High-Yield Dividend Screener

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