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SB Financial Group, Inc. (SBFG)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$49.90 - $133.22$76.46
Multi-Stage$34.25 - $37.41$35.80
Blended Fair Value$56.13
Current Price$19.29
Upside190.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.09%17.02%0.580.550.530.490.470.360.320.210.180.15
YoY Growth--5.19%4.95%8.79%2.25%31.70%11.53%53.45%15.42%20.04%25.54%
Dividend Yield--2.80%3.97%3.74%2.44%2.73%3.40%1.88%1.20%1.15%1.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)13.69
(-) Cash Dividends Paid (M)3.84
(=) Cash Retained (M)9.86
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.741.711.03
Cash Retained (M)9.869.869.86
(-) Cash Required (M)-2.74-1.71-1.03
(=) Excess Retained (M)7.128.148.83
(/) Shares Outstanding (M)6.476.476.47
(=) Excess Retained per Share1.101.261.36
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share1.101.261.36
(=) Adjusted Dividend1.691.851.96
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$49.90$76.46$133.22
Upside / Downside158.71%296.36%590.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)13.6914.5815.5316.5417.6118.7619.32
Payout Ratio28.02%40.41%52.81%65.21%77.60%90.00%92.50%
Projected Dividends (M)3.845.898.2010.7813.6716.8817.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5.355.405.45
Year 2 PV (M)6.766.897.02
Year 3 PV (M)8.088.318.55
Year 4 PV (M)9.309.6510.02
Year 5 PV (M)10.4310.9311.45
PV of Terminal Value (M)181.57190.34199.45
Equity Value (M)221.49231.53241.94
Shares Outstanding (M)6.476.476.47
Fair Value$34.25$35.80$37.41
Upside / Downside77.53%85.58%93.92%

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