Definitive Analysis
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Khosla Ventures Acquisition Co. (KVSA)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$1.33 - $1.92$1.62
Multi-Stage$2.10 - $2.31$2.20
Blended Fair Value$1.91
Current Price$10.64
Upside-82.06%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20222021
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%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%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)5.39
(-) Cash Dividends Paid (M)0.52
(=) Cash Retained (M)4.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.080.670.40
Cash Retained (M)4.884.884.88
(-) Cash Required (M)-1.08-0.67-0.40
(=) Excess Retained (M)3.804.204.47
(/) Shares Outstanding (M)28.6228.6228.62
(=) Excess Retained per Share0.130.150.16
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.130.150.16
(=) Adjusted Dividend0.150.160.17
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.33$1.62$1.92
Upside / Downside-87.49%-84.80%-81.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5.395.345.295.235.185.135.28
Payout Ratio9.61%25.69%41.76%57.84%73.92%90.00%92.50%
Projected Dividends (M)0.521.372.213.033.834.624.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1.241.261.27
Year 2 PV (M)1.821.851.89
Year 3 PV (M)2.262.332.40
Year 4 PV (M)2.602.702.81
Year 5 PV (M)2.842.993.14
PV of Terminal Value (M)49.2951.8554.52
Equity Value (M)60.0462.9966.05
Shares Outstanding (M)28.6228.6228.62
Fair Value$2.10$2.20$2.31
Upside / Downside-80.28%-79.31%-78.31%

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