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Griffon Corporation (GFF)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$20.28 - $43.01$28.79
Multi-Stage$17.90 - $19.51$18.69
Blended Fair Value$23.74
Current Price$76.15
Upside-68.82%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS22.26%17.89%0.850.762.862.700.370.310.291.060.220.19
YoY Growth--10.85%-73.24%5.63%639.12%17.96%6.24%-72.54%382.30%17.36%14.95%
Dividend Yield--1.11%1.07%4.69%7.56%1.38%1.64%1.55%10.95%1.17%0.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)51.11
(-) Cash Dividends Paid (M)39.69
(=) Cash Retained (M)11.42
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.226.393.83
Cash Retained (M)11.4211.4211.42
(-) Cash Required (M)-10.22-6.39-3.83
(=) Excess Retained (M)1.205.037.58
(/) Shares Outstanding (M)46.8446.8446.84
(=) Excess Retained per Share0.030.110.16
LTM Dividend per Share0.850.850.85
(+) Excess Retained per Share0.030.110.16
(=) Adjusted Dividend0.870.951.01
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.60%5.60%6.60%
Fair Value$20.28$28.79$43.01
Upside / Downside-73.36%-62.19%-43.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)51.1153.9756.9960.1863.5567.1069.12
Payout Ratio77.66%80.13%82.60%85.06%87.53%90.00%92.50%
Projected Dividends (M)39.6943.2547.0751.1955.6260.3963.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.60%5.60%6.60%
Year 1 PV (M)39.2639.6440.01
Year 2 PV (M)38.8039.5540.30
Year 3 PV (M)38.3139.4240.55
Year 4 PV (M)37.8039.2640.77
Year 5 PV (M)37.2639.0840.96
PV of Terminal Value (M)646.83678.35711.08
Equity Value (M)838.27875.30913.69
Shares Outstanding (M)46.8446.8446.84
Fair Value$17.90$18.69$19.51
Upside / Downside-76.50%-75.46%-74.38%

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