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Associated Banc-Corp (ASB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$18.98 - $38.86$26.60
Multi-Stage$17.60 - $19.18$18.38
Blended Fair Value$22.49
Current Price$25.71
Upside-12.52%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.48%9.02%0.850.790.750.710.680.680.640.460.410.38
YoY Growth--7.46%5.20%6.10%3.60%0.20%5.96%38.08%12.62%8.74%6.29%
Dividend Yield--3.76%3.71%4.17%3.10%3.19%5.32%2.91%1.87%1.69%2.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.03
(-) Cash Dividends Paid (M)154.13
(=) Cash Retained (M)21.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2122.0013.20
Cash Retained (M)21.9021.9021.90
(-) Cash Required (M)-35.21-22.00-13.20
(=) Excess Retained (M)-13.30-0.108.70
(/) Shares Outstanding (M)164.34164.34164.34
(=) Excess Retained per Share-0.080.000.05
LTM Dividend per Share0.940.940.94
(+) Excess Retained per Share-0.080.000.05
(=) Adjusted Dividend0.860.940.99
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.39%5.39%6.39%
Fair Value$18.98$26.60$38.86
Upside / Downside-26.17%3.48%51.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.03185.51195.50206.03217.13228.82235.69
Payout Ratio87.56%88.05%88.53%89.02%89.51%90.00%92.50%
Projected Dividends (M)154.13163.34173.09183.42194.35205.94218.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.39%5.39%6.39%
Year 1 PV (M)148.30149.72151.14
Year 2 PV (M)142.68145.42148.20
Year 3 PV (M)137.27141.25145.31
Year 4 PV (M)132.06137.19142.47
Year 5 PV (M)127.04133.25139.69
PV of Terminal Value (M)2,205.472,313.152,425.00
Equity Value (M)2,892.813,019.983,151.81
Shares Outstanding (M)164.34164.34164.34
Fair Value$17.60$18.38$19.18
Upside / Downside-31.53%-28.52%-25.40%

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