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Saba Capital Income & Opportunities Fund II (SABA)

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

Valuation Snapshot

Stable Growth$13.94 - $20.07$16.93
Multi-Stage$22.48 - $24.70$23.57
Blended Fair Value$20.25
Current Price$8.54
Upside137.13%
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 Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$13.94$16.93$20.07
Upside / Downside63.25%98.27%135.03%

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 Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)18.8919.0819.28
Year 2 PV (M)22.8823.3423.82
Year 3 PV (M)25.8526.6527.47
Year 4 PV (M)27.9929.1530.35
Year 5 PV (M)29.4330.9632.56
PV of Terminal Value (M)512.42539.10566.88
Equity Value (M)637.46668.30700.35
Shares Outstanding (M)28.3528.3528.35
Fair Value$22.48$23.57$24.70
Upside / Downside163.26%176.00%189.23%

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