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Korn Ferry (KFY)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$117.04 - $310.48$178.97
Multi-Stage$80.36 - $87.79$84.01
Blended Fair Value$131.49
Current Price$64.70
Upside103.23%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS29.69%32.26%1.591.040.630.510.430.430.450.440.440.42
YoY Growth--53.76%64.97%23.09%19.06%-1.32%-2.82%2.20%-1.56%6.80%327.68%
Dividend Yield--2.25%1.41%1.19%0.78%0.62%1.55%1.14%0.66%1.33%1.85%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)261.69
(-) Cash Dividends Paid (M)70.58
(=) Cash Retained (M)191.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)52.3432.7119.63
Cash Retained (M)191.11191.11191.11
(-) Cash Required (M)-52.34-32.71-19.63
(=) Excess Retained (M)138.78158.40171.49
(/) Shares Outstanding (M)52.4552.4552.45
(=) Excess Retained per Share2.653.023.27
LTM Dividend per Share1.351.351.35
(+) Excess Retained per Share2.653.023.27
(=) Adjusted Dividend3.994.374.62
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$117.04$178.97$310.48
Upside / Downside80.90%176.61%379.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)261.69278.70296.82316.11336.66358.54369.30
Payout Ratio26.97%39.58%52.18%64.79%77.39%90.00%92.50%
Projected Dividends (M)70.58110.30154.89204.80260.55322.69341.60

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)100.15101.10102.05
Year 2 PV (M)127.70130.13132.59
Year 3 PV (M)153.32157.72162.20
Year 4 PV (M)177.11183.92190.93
Year 5 PV (M)199.16208.78218.77
PV of Terminal Value (M)3,457.503,624.503,797.89
Equity Value (M)4,214.944,406.154,604.43
Shares Outstanding (M)52.4552.4552.45
Fair Value$80.36$84.01$87.79
Upside / Downside24.21%29.84%35.69%

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