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Synovus Financial Corp. (SNV)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$125.65 - $313.64$188.49
Multi-Stage$90.23 - $98.58$94.33
Blended Fair Value$141.41
Current Price$49.08
Upside188.12%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.56%17.79%1.551.531.381.371.341.190.750.390.420.39
YoY Growth--1.88%10.15%0.76%2.48%13.13%58.08%94.30%-8.00%7.35%29.32%
Dividend Yield--3.33%3.89%4.49%2.80%2.93%6.75%2.14%0.77%1.02%1.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)800.15
(-) Cash Dividends Paid (M)216.48
(=) Cash Retained (M)583.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)160.03100.0260.01
Cash Retained (M)583.67583.67583.67
(-) Cash Required (M)-160.03-100.02-60.01
(=) Excess Retained (M)423.64483.66523.66
(/) Shares Outstanding (M)141.64141.64141.64
(=) Excess Retained per Share2.993.413.70
LTM Dividend per Share1.531.531.53
(+) Excess Retained per Share2.993.413.70
(=) Adjusted Dividend4.524.945.23
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.31%6.31%7.31%
Fair Value$125.65$188.49$313.64
Upside / Downside156.00%284.05%539.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)800.15850.64904.32961.381,022.041,086.541,119.13
Payout Ratio27.05%39.64%52.23%64.82%77.41%90.00%92.50%
Projected Dividends (M)216.48337.22472.35623.18791.17977.881,035.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.31%6.31%7.31%
Year 1 PV (M)306.19309.10312.01
Year 2 PV (M)389.42396.85404.35
Year 3 PV (M)466.50479.92493.59
Year 4 PV (M)537.76558.48579.79
Year 5 PV (M)603.50632.71663.03
PV of Terminal Value (M)10,476.8110,983.7811,510.18
Equity Value (M)12,780.1913,360.8313,962.94
Shares Outstanding (M)141.64141.64141.64
Fair Value$90.23$94.33$98.58
Upside / Downside83.84%92.19%100.86%

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