Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Cowen Inc. (COWN)

Company Dividend Discount ModelIndustry: Financial - Capital MarketsSector: Financial Services

Valuation Snapshot

Stable Growth$20.57 - $32.49$26.02
Multi-Stage$51.57 - $56.84$54.15
Blended Fair Value$40.09
Current Price$38.62
Upside3.80%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS0.00%0.00%0.690.570.390.000.000.000.000.000.000.00
YoY Growth--20.80%45.30%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.79%2.11%1.12%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)65.86
(-) Cash Dividends Paid (M)21.94
(=) Cash Retained (M)43.91
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.178.234.94
Cash Retained (M)43.9143.9143.91
(-) Cash Required (M)-13.17-8.23-4.94
(=) Excess Retained (M)30.7435.6838.97
(/) Shares Outstanding (M)31.7431.7431.74
(=) Excess Retained per Share0.971.121.23
LTM Dividend per Share0.690.690.69
(+) Excess Retained per Share0.971.121.23
(=) Adjusted Dividend1.661.821.92
WACC / Discount Rate5.91%5.91%5.91%
Growth Rate-2.00%-1.00%0.00%
Fair Value$20.57$26.02$32.49
Upside / Downside-46.73%-32.62%-15.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)65.8665.2064.5463.9063.2662.6364.51
Payout Ratio33.32%44.66%55.99%67.33%78.66%90.00%92.50%
Projected Dividends (M)21.9429.1236.1443.0249.7656.3659.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.91%5.91%5.91%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)27.2127.4927.77
Year 2 PV (M)31.5732.2232.88
Year 3 PV (M)35.1336.2237.33
Year 4 PV (M)37.9839.5641.18
Year 5 PV (M)40.2142.3144.49
PV of Terminal Value (M)1,464.781,541.051,620.47
Equity Value (M)1,636.891,718.851,804.11
Shares Outstanding (M)31.7431.7431.74
Fair Value$51.57$54.15$56.84
Upside / Downside33.53%40.21%47.17%

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