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Royce Micro-Cap Trust, Inc. (RMT)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$1.91 - $2.38$2.17
Multi-Stage$3.03 - $3.43$3.23
Blended Fair Value$2.70
Current Price$9.25
Upside-70.84%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-45.80%-34.57%0.020.290.340.330.410.440.470.020.370.69
YoY Growth---92.86%-15.56%3.83%-20.09%-6.50%-5.94%2,491.06%-95.15%-46.21%-51.67%
Dividend Yield--0.21%3.16%3.92%2.84%4.06%5.14%6.29%0.19%4.55%9.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)109.29
(-) Cash Dividends Paid (M)35.28
(=) Cash Retained (M)74.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)21.8613.668.20
Cash Retained (M)74.0074.0074.00
(-) Cash Required (M)-21.86-13.66-8.20
(=) Excess Retained (M)52.1460.3465.81
(/) Shares Outstanding (M)63.5863.5863.58
(=) Excess Retained per Share0.820.951.03
LTM Dividend per Share0.550.550.55
(+) Excess Retained per Share0.820.951.03
(=) Adjusted Dividend1.381.501.59
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-36.57%-35.57%-34.57%
Fair Value$1.91$2.17$2.38
Upside / Downside-79.35%-76.54%-74.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)109.2970.4145.3629.2318.8312.1312.49
Payout Ratio32.29%43.83%55.37%66.91%78.46%90.00%92.50%
Projected Dividends (M)35.2830.8625.1219.5614.7710.9211.56

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-36.57%-35.57%-34.57%
Year 1 PV (M)27.8528.2928.73
Year 2 PV (M)20.4621.1121.77
Year 3 PV (M)14.3815.0715.78
Year 4 PV (M)9.8010.4311.10
Year 5 PV (M)6.547.077.64
PV of Terminal Value (M)113.84123.10132.95
Equity Value (M)192.86205.07217.97
Shares Outstanding (M)63.5863.5863.58
Fair Value$3.03$3.23$3.43
Upside / Downside-67.21%-65.13%-62.94%

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