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Westwood Holdings Group, Inc. (WHG)

Company Dividend Discount ModelIndustry: Financial - Capital MarketsSector: Financial Services

Valuation Snapshot

Stable Growth$4.96 - $6.93$5.94
Multi-Stage$9.32 - $10.21$9.75
Blended Fair Value$7.85
Current Price$16.49
Upside-52.41%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-26.91%-9.00%0.620.630.642.621.262.982.812.502.221.90
YoY Growth---1.13%-2.19%-75.47%107.66%-57.67%5.96%12.31%12.76%16.99%19.03%
Dividend Yield--3.83%4.80%5.73%17.08%8.71%16.26%7.82%4.43%4.15%3.23%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7.25
(-) Cash Dividends Paid (M)5.35
(=) Cash Retained (M)1.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.450.910.54
Cash Retained (M)1.901.901.90
(-) Cash Required (M)-1.45-0.91-0.54
(=) Excess Retained (M)0.451.001.36
(/) Shares Outstanding (M)8.768.768.76
(=) Excess Retained per Share0.050.110.16
LTM Dividend per Share0.610.610.61
(+) Excess Retained per Share0.050.110.16
(=) Adjusted Dividend0.660.720.77
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.77%-2.77%-1.77%
Fair Value$4.96$5.94$6.93
Upside / Downside-69.93%-63.97%-57.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7.257.056.866.676.486.306.49
Payout Ratio73.76%77.01%80.26%83.50%86.75%90.00%92.50%
Projected Dividends (M)5.355.435.505.575.625.676.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.77%-2.77%-1.77%
Year 1 PV (M)4.934.985.03
Year 2 PV (M)4.534.624.72
Year 3 PV (M)4.164.294.42
Year 4 PV (M)3.813.974.14
Year 5 PV (M)3.493.673.87
PV of Terminal Value (M)60.7263.9567.30
Equity Value (M)81.6485.4889.48
Shares Outstanding (M)8.768.768.76
Fair Value$9.32$9.75$10.21
Upside / Downside-43.51%-40.85%-38.08%

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