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Tortoise Energy Independence Fund, Inc. (NDP)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$40.20 - $57.87$48.82
Multi-Stage$70.52 - $77.14$73.77
Blended Fair Value$61.29
Current Price$33.98
Upside80.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017
DPS-29.26%0.00%2.522.190.660.858.8514.2514.210.000.000.00
YoY Growth--15.21%230.97%-22.50%-90.35%-37.90%0.32%0.00%0.00%0.00%0.00%
Dividend Yield--8.72%6.76%2.98%6.76%30.47%19.79%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)9.82
(-) Cash Dividends Paid (M)8.48
(=) Cash Retained (M)1.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.961.230.74
Cash Retained (M)1.341.341.34
(-) Cash Required (M)-1.96-1.23-0.74
(=) Excess Retained (M)-0.620.120.61
(/) Shares Outstanding (M)1.731.731.73
(=) Excess Retained per Share-0.360.070.35
LTM Dividend per Share4.904.904.90
(+) Excess Retained per Share-0.360.070.35
(=) Adjusted Dividend4.544.975.25
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$40.20$48.82$57.87
Upside / Downside18.30%43.67%70.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9.829.729.639.539.449.349.62
Payout Ratio86.32%87.05%87.79%88.53%89.26%90.00%92.50%
Projected Dividends (M)8.488.478.458.448.428.418.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)7.687.767.84
Year 2 PV (M)6.967.107.25
Year 3 PV (M)6.316.506.70
Year 4 PV (M)5.715.956.19
Year 5 PV (M)5.175.445.72
PV of Terminal Value (M)90.1094.7999.68
Equity Value (M)121.94127.55133.38
Shares Outstanding (M)1.731.731.73
Fair Value$70.52$73.77$77.14
Upside / Downside107.53%117.09%127.01%

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