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Oppenheimer Holdings Inc. (OPY)

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

Valuation Snapshot

Stable Growth$83.93 - $136.71$107.55
Multi-Stage$99.53 - $109.14$104.25
Blended Fair Value$105.90
Current Price$73.91
Upside43.28%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.86%1.36%0.600.570.621.711.630.520.510.510.520.53
YoY Growth--6.09%-8.40%-63.77%4.66%212.55%1.90%-0.05%-0.87%-2.01%0.42%
Dividend Yield--1.01%1.45%1.58%3.93%4.08%2.65%1.95%1.99%3.03%3.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)84.77
(-) Cash Dividends Paid (M)7.54
(=) Cash Retained (M)77.23
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.9510.606.36
Cash Retained (M)77.2377.2377.23
(-) Cash Required (M)-16.95-10.60-6.36
(=) Excess Retained (M)60.2766.6370.87
(/) Shares Outstanding (M)11.3711.3711.37
(=) Excess Retained per Share5.305.866.23
LTM Dividend per Share0.660.660.66
(+) Excess Retained per Share5.305.866.23
(=) Adjusted Dividend5.976.536.90
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.86%2.86%3.86%
Fair Value$83.93$107.55$136.71
Upside / Downside13.55%45.52%84.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)84.7787.1989.6892.2594.8897.59100.52
Payout Ratio8.90%25.12%41.34%57.56%73.78%90.00%92.50%
Projected Dividends (M)7.5421.9037.0753.1070.0087.8392.98

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.86%2.86%3.86%
Year 1 PV (M)19.8820.0720.27
Year 2 PV (M)30.5531.1531.76
Year 3 PV (M)39.7140.8942.09
Year 4 PV (M)47.5249.4151.36
Year 5 PV (M)54.1256.8359.65
PV of Terminal Value (M)939.52986.561,035.46
Equity Value (M)1,131.301,184.911,240.59
Shares Outstanding (M)11.3711.3711.37
Fair Value$99.53$104.25$109.14
Upside / Downside34.66%41.04%47.67%

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