Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Volta Finance Limited (VTAS.L)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$19.80 - $29.05$24.25
Multi-Stage$34.40 - $37.77$36.06
Blended Fair Value$30.15
Current Price$6.13
Upside391.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.05%1.69%0.550.510.570.510.530.610.620.620.620.61
YoY Growth--7.86%-10.54%11.71%-3.75%-13.07%-1.58%0.05%0.07%1.71%30.79%
Dividend Yield--10.76%10.06%10.54%8.38%11.45%8.97%7.41%7.34%6.98%5.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)94.12
(-) Cash Dividends Paid (M)40.42
(=) Cash Retained (M)53.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.8211.777.06
Cash Retained (M)53.7053.7053.70
(-) Cash Required (M)-18.82-11.77-7.06
(=) Excess Retained (M)34.8841.9346.64
(/) Shares Outstanding (M)36.5836.5836.58
(=) Excess Retained per Share0.951.151.28
LTM Dividend per Share1.101.101.10
(+) Excess Retained per Share0.951.151.28
(=) Adjusted Dividend2.062.252.38
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate-1.81%-0.81%0.19%
Fair Value$19.80$24.25$29.05
Upside / Downside222.99%295.63%373.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)94.1293.3692.6091.8491.1090.3693.07
Payout Ratio42.95%52.36%61.77%71.18%80.59%90.00%92.50%
Projected Dividends (M)40.4248.8857.1965.3773.4281.3286.09

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate-1.81%-0.81%0.19%
Year 1 PV (M)44.6445.0945.55
Year 2 PV (M)47.7048.6849.66
Year 3 PV (M)49.7951.3352.90
Year 4 PV (M)51.0753.1855.36
Year 5 PV (M)51.6654.3557.14
PV of Terminal Value (M)1,013.621,066.301,121.15
Equity Value (M)1,258.481,318.931,381.75
Shares Outstanding (M)36.5836.5836.58
Fair Value$34.40$36.06$37.77
Upside / Downside461.22%488.18%516.20%

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