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WAM Strategic Value Limited (WAR.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$1.61 - $2.43$1.99
Multi-Stage$3.30 - $3.62$3.46
Blended Fair Value$2.73
Current Price$1.08
Upside152.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022
DPS0.00%0.00%0.060.040.030.010.000.000.000.000.000.00
YoY Growth--41.18%21.43%376.98%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.55%3.86%3.59%0.76%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)33.62
(-) Cash Dividends Paid (M)16.66
(=) Cash Retained (M)16.96
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.724.202.52
Cash Retained (M)16.9616.9616.96
(-) Cash Required (M)-6.72-4.20-2.52
(=) Excess Retained (M)10.2412.7614.44
(/) Shares Outstanding (M)180.15180.15180.15
(=) Excess Retained per Share0.060.070.08
LTM Dividend per Share0.090.090.09
(+) Excess Retained per Share0.060.070.08
(=) Adjusted Dividend0.150.160.17
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.61$1.99$2.43
Upside / Downside48.73%84.60%124.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)33.6233.2932.9532.6332.3031.9832.94
Payout Ratio49.55%57.64%65.73%73.82%81.91%90.00%92.50%
Projected Dividends (M)16.6619.1921.6624.0826.4628.7830.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)17.7317.9118.10
Year 2 PV (M)18.5018.8819.26
Year 3 PV (M)19.0119.6020.20
Year 4 PV (M)19.3020.1020.93
Year 5 PV (M)19.4020.4121.47
PV of Terminal Value (M)499.79525.82552.91
Equity Value (M)593.74622.73652.87
Shares Outstanding (M)180.15180.15180.15
Fair Value$3.30$3.46$3.62
Upside / Downside205.17%220.07%235.56%

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