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Park National Corporation (PRK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$202.54 - $431.12$287.90
Multi-Stage$171.74 - $187.54$179.49
Blended Fair Value$233.70
Current Price$162.53
Upside43.79%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.32%2.96%4.774.254.724.584.334.263.883.543.553.56
YoY Growth--12.39%-9.99%3.09%5.62%1.79%9.68%9.60%-0.28%-0.21%-0.17%
Dividend Yield--3.15%3.24%3.98%3.48%3.35%5.48%4.10%3.41%3.38%3.95%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.06
(-) Cash Dividends Paid (M)77.82
(=) Cash Retained (M)98.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2122.0113.20
Cash Retained (M)98.2498.2498.24
(-) Cash Required (M)-35.21-22.01-13.20
(=) Excess Retained (M)63.0376.2385.04
(/) Shares Outstanding (M)16.2416.2416.24
(=) Excess Retained per Share3.884.695.24
LTM Dividend per Share4.794.794.79
(+) Excess Retained per Share3.884.695.24
(=) Adjusted Dividend8.679.4910.03
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.60%5.60%6.60%
Fair Value$202.54$287.90$431.12
Upside / Downside24.61%77.14%165.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.06185.92196.34207.33218.94231.20238.14
Payout Ratio44.20%53.36%62.52%71.68%80.84%90.00%92.50%
Projected Dividends (M)77.8299.21122.75148.62176.99208.08220.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.60%5.60%6.60%
Year 1 PV (M)90.0990.9591.81
Year 2 PV (M)101.22103.17105.13
Year 3 PV (M)111.28114.51117.79
Year 4 PV (M)120.35125.02129.82
Year 5 PV (M)128.48134.74141.24
PV of Terminal Value (M)2,237.062,346.062,459.26
Equity Value (M)2,788.492,914.443,045.06
Shares Outstanding (M)16.2416.2416.24
Fair Value$171.74$179.49$187.54
Upside / Downside5.66%10.44%15.39%

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