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CRA International, Inc. (CRAI)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$195.90 - $519.67$299.55
Multi-Stage$134.04 - $146.45$140.13
Blended Fair Value$219.84
Current Price$205.17
Upside7.15%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.63%0.00%1.821.601.411.221.111.000.890.730.170.00
YoY Growth--13.82%12.81%15.57%10.48%10.58%12.33%22.24%323.76%0.00%0.00%
Dividend Yield--1.05%1.07%1.31%1.43%1.47%3.19%1.76%1.39%0.49%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)56.58
(-) Cash Dividends Paid (M)13.55
(=) Cash Retained (M)43.04
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.327.074.24
Cash Retained (M)43.0443.0443.04
(-) Cash Required (M)-11.32-7.07-4.24
(=) Excess Retained (M)31.7235.9638.79
(/) Shares Outstanding (M)6.786.786.78
(=) Excess Retained per Share4.685.315.73
LTM Dividend per Share2.002.002.00
(+) Excess Retained per Share4.685.315.73
(=) Adjusted Dividend6.687.317.72
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$195.90$299.55$519.67
Upside / Downside-4.52%46.00%153.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)56.5860.2664.1868.3572.7977.5279.85
Payout Ratio23.94%37.15%50.37%63.58%76.79%90.00%92.50%
Projected Dividends (M)13.5522.3932.3243.4655.9069.7773.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)20.3320.5220.72
Year 2 PV (M)26.6527.1627.67
Year 3 PV (M)32.5333.4734.42
Year 4 PV (M)38.0039.4640.96
Year 5 PV (M)43.0645.1447.30
PV of Terminal Value (M)747.59783.70821.19
Equity Value (M)908.16949.45992.26
Shares Outstanding (M)6.786.786.78
Fair Value$134.04$140.13$146.45
Upside / Downside-34.67%-31.70%-28.62%

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