Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Despegar.com, Corp. (DESP)

Company Dividend Discount ModelIndustry: Travel ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$3.03 - $4.63$3.78
Multi-Stage$6.75 - $7.41$7.07
Blended Fair Value$5.43
Current Price$19.25
Upside-71.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.280.000.000.000.010.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.48%0.00%0.00%0.00%0.05%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)27.91
(-) Cash Dividends Paid (M)23.81
(=) Cash Retained (M)4.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.583.492.09
Cash Retained (M)4.104.104.10
(-) Cash Required (M)-5.58-3.49-2.09
(=) Excess Retained (M)-1.490.612.00
(/) Shares Outstanding (M)82.2682.2682.26
(=) Excess Retained per Share-0.020.010.02
LTM Dividend per Share0.290.290.29
(+) Excess Retained per Share-0.020.010.02
(=) Adjusted Dividend0.270.300.31
WACC / Discount Rate6.77%6.77%6.77%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.03$3.78$4.63
Upside / Downside-84.25%-80.35%-75.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)27.9127.6327.3527.0826.8126.5427.33
Payout Ratio85.32%86.26%87.19%88.13%89.06%90.00%92.50%
Projected Dividends (M)23.8123.8323.8523.8623.8723.8825.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.77%6.77%6.77%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)22.0922.3222.54
Year 2 PV (M)20.5020.9221.34
Year 3 PV (M)19.0219.6020.20
Year 4 PV (M)17.6418.3719.12
Year 5 PV (M)16.3617.2118.10
PV of Terminal Value (M)459.40483.32508.23
Equity Value (M)555.01581.74609.54
Shares Outstanding (M)82.2682.2682.26
Fair Value$6.75$7.07$7.41
Upside / Downside-64.95%-63.26%-61.51%

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