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ePlus inc. (PLUS)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$67.09 - $122.14$89.94
Multi-Stage$65.69 - $71.97$68.77
Blended Fair Value$79.36
Current Price$71.01
Upside11.75%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%-11.11%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)121.88
(-) Cash Dividends Paid (M)6.59
(=) Cash Retained (M)115.29
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)24.3815.249.14
Cash Retained (M)115.29115.29115.29
(-) Cash Required (M)-24.38-15.24-9.14
(=) Excess Retained (M)90.91100.05106.15
(/) Shares Outstanding (M)26.5126.5126.51
(=) Excess Retained per Share3.433.774.00
LTM Dividend per Share0.250.250.25
(+) Excess Retained per Share3.433.774.00
(=) Adjusted Dividend3.684.024.25
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.43%4.43%5.43%
Fair Value$67.09$89.94$122.14
Upside / Downside-5.53%26.66%72.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)121.88127.28132.91138.79144.94151.35155.90
Payout Ratio5.41%22.33%39.25%56.16%73.08%90.00%92.50%
Projected Dividends (M)6.5928.4252.1677.95105.92136.22144.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.43%4.43%5.43%
Year 1 PV (M)25.8026.0526.30
Year 2 PV (M)42.9943.8244.67
Year 3 PV (M)58.3260.0361.77
Year 4 PV (M)71.9574.7777.68
Year 5 PV (M)84.0088.1492.44
PV of Terminal Value (M)1,458.171,530.041,604.72
Equity Value (M)1,741.231,822.851,907.57
Shares Outstanding (M)26.5126.5126.51
Fair Value$65.69$68.77$71.97
Upside / Downside-7.49%-3.16%1.35%

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