Definitive Analysis
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Definitive Analysis

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Sector

The Growth for Good Acquisition Corporation (GFGD)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$2.85 - $4.51$3.61
Multi-Stage$7.18 - $7.92$7.54
Blended Fair Value$5.58
Current Price$10.44
Upside-46.59%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022
DPS0.00%0.00%0.060.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.57%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)9.35
(-) Cash Dividends Paid (M)3.96
(=) Cash Retained (M)5.39
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.871.170.70
Cash Retained (M)5.395.395.39
(-) Cash Required (M)-1.87-1.17-0.70
(=) Excess Retained (M)3.524.224.69
(/) Shares Outstanding (M)32.4332.4332.43
(=) Excess Retained per Share0.110.130.14
LTM Dividend per Share0.120.120.12
(+) Excess Retained per Share0.110.130.14
(=) Adjusted Dividend0.230.250.27
WACC / Discount Rate5.92%5.92%5.92%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.85$3.61$4.51
Upside / Downside-72.66%-65.42%-56.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9.359.259.169.078.988.899.15
Payout Ratio42.35%51.88%61.41%70.94%80.47%90.00%92.50%
Projected Dividends (M)3.964.805.636.437.228.008.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.92%5.92%5.92%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4.494.534.58
Year 2 PV (M)4.915.015.12
Year 3 PV (M)5.255.415.58
Year 4 PV (M)5.515.745.98
Year 5 PV (M)5.706.006.31
PV of Terminal Value (M)207.07217.86229.08
Equity Value (M)232.94244.56256.65
Shares Outstanding (M)32.4332.4332.43
Fair Value$7.18$7.54$7.92
Upside / Downside-31.19%-27.76%-24.19%

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