Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sound Point Acquisition Corp I, Ltd (SPCMU)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$11.56 - $18.13$14.58
Multi-Stage$27.28 - $30.10$28.66
Blended Fair Value$21.62
Current Price$10.54
Upside105.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022
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)38.51
(-) Cash Dividends Paid (M)0.51
(=) Cash Retained (M)38.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.704.812.89
Cash Retained (M)38.0038.0038.00
(-) Cash Required (M)-7.70-4.81-2.89
(=) Excess Retained (M)30.3033.1835.11
(/) Shares Outstanding (M)32.3432.3432.34
(=) Excess Retained per Share0.941.031.09
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.941.031.09
(=) Adjusted Dividend0.951.041.10
WACC / Discount Rate6.07%6.07%6.07%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.56$14.58$18.13
Upside / Downside9.68%38.31%72.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)38.5138.1237.7437.3736.9936.6237.72
Payout Ratio1.33%19.06%36.80%54.53%72.27%90.00%92.50%
Projected Dividends (M)0.517.2713.8920.3826.7332.9634.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.07%6.07%6.07%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)6.786.856.92
Year 2 PV (M)12.1012.3412.59
Year 3 PV (M)16.5617.0717.59
Year 4 PV (M)20.2721.1221.98
Year 5 PV (M)23.3324.5425.81
PV of Terminal Value (M)803.16844.98888.53
Equity Value (M)882.20926.91973.43
Shares Outstanding (M)32.3432.3432.34
Fair Value$27.28$28.66$30.10
Upside / Downside158.78%171.90%185.54%

High-Yield Dividend Screener

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