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Immersion Corporation (IMMR)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$19.63 - $28.25$23.83
Multi-Stage$31.14 - $34.24$32.66
Blended Fair Value$28.25
Current Price$8.37
Upside237.46%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.400.230.000.000.000.000.000.000.000.00
YoY Growth--73.17%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.72%3.03%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)90.23
(-) Cash Dividends Paid (M)12.83
(=) Cash Retained (M)77.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.0511.286.77
Cash Retained (M)77.4077.4077.40
(-) Cash Required (M)-18.05-11.28-6.77
(=) Excess Retained (M)59.3566.1270.63
(/) Shares Outstanding (M)32.4832.4832.48
(=) Excess Retained per Share1.832.042.17
LTM Dividend per Share0.400.400.40
(+) Excess Retained per Share1.832.042.17
(=) Adjusted Dividend2.222.432.57
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$19.63$23.83$28.25
Upside / Downside134.49%184.75%237.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)90.2389.3388.4387.5586.6785.8188.38
Payout Ratio14.22%29.38%44.53%59.69%74.84%90.00%92.50%
Projected Dividends (M)12.8326.2439.3852.2664.8777.2381.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)23.8124.0524.29
Year 2 PV (M)32.4233.0933.76
Year 3 PV (M)39.0440.2441.47
Year 4 PV (M)43.9745.7947.67
Year 5 PV (M)47.4949.9752.54
PV of Terminal Value (M)824.49867.42912.12
Equity Value (M)1,011.221,060.561,111.86
Shares Outstanding (M)32.4832.4832.48
Fair Value$31.14$32.66$34.24
Upside / Downside272.01%290.17%309.04%

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