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Saba Capital Income & Opportunities Fund II (SABA)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$13.92 - $20.03$16.90
Multi-Stage$22.41 - $24.62$23.50
Blended Fair Value$20.20
Current Price$8.54
Upside136.52%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
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)55.87
(-) Cash Dividends Paid (M)13.72
(=) Cash Retained (M)42.15
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.176.984.19
Cash Retained (M)42.1542.1542.15
(-) Cash Required (M)-11.17-6.98-4.19
(=) Excess Retained (M)30.9835.1737.96
(/) Shares Outstanding (M)28.3528.3528.35
(=) Excess Retained per Share1.091.241.34
LTM Dividend per Share0.480.480.48
(+) Excess Retained per Share1.091.241.34
(=) Adjusted Dividend1.581.721.82
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$13.92$16.90$20.03
Upside / Downside62.98%97.92%134.57%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)55.8755.3154.7554.2153.6653.1354.72
Payout Ratio24.55%37.64%50.73%63.82%76.91%90.00%92.50%
Projected Dividends (M)13.7220.8227.7834.5941.2747.8150.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)18.8919.0819.27
Year 2 PV (M)22.8723.3423.81
Year 3 PV (M)25.8426.6427.46
Year 4 PV (M)27.9729.1330.33
Year 5 PV (M)29.4130.9432.53
PV of Terminal Value (M)510.48537.06564.74
Equity Value (M)635.46666.19698.14
Shares Outstanding (M)28.3528.3528.35
Fair Value$22.41$23.50$24.62
Upside / Downside162.43%175.13%188.32%

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