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Pershing Square Holdings, Ltd. (PSH.AS)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$91.57 - $131.78$111.19
Multi-Stage$143.64 - $158.03$150.69
Blended Fair Value$130.94
Current Price$47.65
Upside174.80%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.08%0.00%0.570.530.500.430.440.470.000.000.000.00
YoY Growth--8.49%5.91%17.10%-1.83%-7.53%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.21%1.14%1.45%1.04%1.24%2.46%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,416.72
(-) Cash Dividends Paid (M)156.56
(=) Cash Retained (M)2,260.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)483.34302.09181.25
Cash Retained (M)2,260.172,260.172,260.17
(-) Cash Required (M)-483.34-302.09-181.25
(=) Excess Retained (M)1,776.821,958.082,078.91
(/) Shares Outstanding (M)186.45186.45186.45
(=) Excess Retained per Share9.5310.5011.15
LTM Dividend per Share0.840.840.84
(+) Excess Retained per Share9.5310.5011.15
(=) Adjusted Dividend10.3711.3411.99
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$91.57$111.19$131.78
Upside / Downside92.16%133.35%176.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,416.722,392.562,368.632,344.942,321.492,298.282,367.23
Payout Ratio6.48%23.18%39.89%56.59%73.30%90.00%92.50%
Projected Dividends (M)156.56554.65944.771,327.031,701.552,068.452,189.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)503.26508.40513.53
Year 2 PV (M)777.81793.77809.88
Year 3 PV (M)991.301,021.951,053.24
Year 4 PV (M)1,153.301,201.101,250.37
Year 5 PV (M)1,272.081,338.321,407.30
PV of Terminal Value (M)22,083.3423,233.2824,430.62
Equity Value (M)26,781.1028,096.8229,464.94
Shares Outstanding (M)186.45186.45186.45
Fair Value$143.64$150.69$158.03
Upside / Downside201.44%216.25%231.65%

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