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Booz Allen Hamilton Holding Corporation (BAH)

Company Dividend Discount ModelIndustry: Consulting ServicesSector: Industrials

Valuation Snapshot

Stable Growth$154.75 - $413.12$237.09
Multi-Stage$106.82 - $116.65$111.65
Blended Fair Value$174.37
Current Price$99.95
Upside74.46%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.82%2.22%2.142.021.881.671.441.170.910.820.740.64
YoY Growth--5.51%7.63%12.89%15.46%23.51%28.33%10.47%11.28%16.13%-62.80%
Dividend Yield--2.05%1.34%1.69%1.84%1.69%1.50%1.37%1.88%2.28%2.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)823.66
(-) Cash Dividends Paid (M)273.05
(=) Cash Retained (M)550.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)164.73102.9661.77
Cash Retained (M)550.61550.61550.61
(-) Cash Required (M)-164.73-102.96-61.77
(=) Excess Retained (M)385.88447.65488.83
(/) Shares Outstanding (M)125.48125.48125.48
(=) Excess Retained per Share3.083.573.90
LTM Dividend per Share2.182.182.18
(+) Excess Retained per Share3.083.573.90
(=) Adjusted Dividend5.255.746.07
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$154.75$237.09$413.12
Upside / Downside54.83%137.21%313.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)823.66877.19934.21994.931,059.601,128.481,162.33
Payout Ratio33.15%44.52%55.89%67.26%78.63%90.00%92.50%
Projected Dividends (M)273.05390.53522.13669.19833.171,015.631,075.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)354.66358.02361.38
Year 2 PV (M)430.62438.82447.10
Year 3 PV (M)501.22515.60530.27
Year 4 PV (M)566.71588.51610.92
Year 5 PV (M)627.37657.67689.14
PV of Terminal Value (M)10,923.3911,450.9911,998.79
Equity Value (M)13,403.9714,009.6214,637.60
Shares Outstanding (M)125.48125.48125.48
Fair Value$106.82$111.65$116.65
Upside / Downside6.88%11.71%16.71%

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