Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cadence Opportunities Fund Limited (CDO.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$1.98 - $2.94$2.44
Multi-Stage$3.86 - $4.24$4.05
Blended Fair Value$3.24
Current Price$1.70
Upside90.75%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS0.00%0.00%0.080.090.090.090.020.000.000.000.000.00
YoY Growth---14.57%-0.99%10.37%332.55%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.70%5.44%5.19%3.57%0.66%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)3.83
(-) Cash Dividends Paid (M)2.73
(=) Cash Retained (M)1.11
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.770.480.29
Cash Retained (M)1.111.111.11
(-) Cash Required (M)-0.77-0.48-0.29
(=) Excess Retained (M)0.340.630.82
(/) Shares Outstanding (M)15.7215.7215.72
(=) Excess Retained per Share0.020.040.05
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.020.040.05
(=) Adjusted Dividend0.200.210.23
WACC / Discount Rate7.67%7.67%7.67%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.98$2.44$2.94
Upside / Downside16.28%43.30%72.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.833.793.763.723.683.643.75
Payout Ratio71.14%74.91%78.68%82.45%86.23%90.00%92.50%
Projected Dividends (M)2.732.842.963.073.173.283.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.67%7.67%7.67%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)2.612.642.67
Year 2 PV (M)2.502.552.60
Year 3 PV (M)2.382.462.53
Year 4 PV (M)2.272.362.46
Year 5 PV (M)2.152.272.38
PV of Terminal Value (M)48.8251.3754.01
Equity Value (M)60.7463.6466.65
Shares Outstanding (M)15.7215.7215.72
Fair Value$3.86$4.05$4.24
Upside / Downside127.35%138.21%149.49%

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