Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker / Industry / Sector

Saba Capital Income & Opportunities Fund II (SABA)

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

Valuation Snapshot

Stable Growth$17.38 - $26.47$21.64
Multi-Stage$36.01 - $39.66$37.80
Blended Fair Value$29.72
Current Price$8.54
Upside248.00%
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 Rate6.89%6.89%6.89%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.38$21.64$26.47
Upside / Downside103.55%153.43%209.91%

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 Rate6.89%6.89%6.89%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)19.2819.4819.67
Year 2 PV (M)23.8224.3124.81
Year 3 PV (M)27.4828.3329.20
Year 4 PV (M)30.3631.6232.92
Year 5 PV (M)32.5834.2736.04
PV of Terminal Value (M)887.41933.62981.74
Equity Value (M)1,020.931,071.631,124.37
Shares Outstanding (M)28.3528.3528.35
Fair Value$36.01$37.80$39.66
Upside / Downside321.63%342.57%364.35%

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