Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Oak Valley Bancorp (OVLY)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$70.44 - $405.50$131.67
Multi-Stage$41.27 - $45.13$43.16
Blended Fair Value$87.42
Current Price$28.17
Upside210.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.10%11.01%0.450.320.300.290.280.270.260.240.230.20
YoY Growth--41.61%6.95%3.69%3.78%3.84%4.58%4.70%4.23%14.45%28.60%
Dividend Yield--1.81%1.33%1.26%1.56%1.62%1.70%1.33%1.09%1.77%2.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)16.89
(-) Cash Dividends Paid (M)5.02
(=) Cash Retained (M)11.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.382.111.27
Cash Retained (M)11.8711.8711.87
(-) Cash Required (M)-3.38-2.11-1.27
(=) Excess Retained (M)8.499.7610.60
(/) Shares Outstanding (M)8.298.298.29
(=) Excess Retained per Share1.031.181.28
LTM Dividend per Share0.610.610.61
(+) Excess Retained per Share1.031.181.28
(=) Adjusted Dividend1.631.781.89
WACC / Discount Rate7.94%7.94%7.94%
Growth Rate5.50%6.50%7.50%
Fair Value$70.44$131.67$405.50
Upside / Downside150.05%367.40%1,339.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)16.8917.9919.1620.4121.7323.1423.84
Payout Ratio29.73%41.78%53.84%65.89%77.95%90.00%92.50%
Projected Dividends (M)5.027.5210.3213.4516.9420.8322.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.94%7.94%7.94%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)6.906.967.03
Year 2 PV (M)8.698.859.02
Year 3 PV (M)10.3910.6910.99
Year 4 PV (M)12.0212.4812.95
Year 5 PV (M)13.5614.2114.89
PV of Terminal Value (M)290.39304.41318.97
Equity Value (M)341.94357.61373.87
Shares Outstanding (M)8.298.298.29
Fair Value$41.27$43.16$45.13
Upside / Downside46.51%53.22%60.19%

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