Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

KKR Group Finance Co. IX LLC 4. (KKRS)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$272.82 - $1,280.25$605.03
Multi-Stage$141.54 - $154.97$148.13
Blended Fair Value$376.58
Current Price$18.26
Upside1,962.34%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.96%-2.46%0.660.660.550.450.380.330.380.370.330.76
YoY Growth---0.48%19.81%22.33%18.58%16.08%-14.30%3.00%12.25%-56.46%-9.99%
Dividend Yield--3.69%3.30%2.98%2.05%1.47%1.27%1.48%1.43%1.28%2.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,000.01
(-) Cash Dividends Paid (M)456.76
(=) Cash Retained (M)5,543.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,200.00750.00450.00
Cash Retained (M)5,543.255,543.255,543.25
(-) Cash Required (M)-1,200.00-750.00-450.00
(=) Excess Retained (M)4,343.254,793.255,093.25
(/) Shares Outstanding (M)932.05932.05932.05
(=) Excess Retained per Share4.665.145.46
LTM Dividend per Share0.490.490.49
(+) Excess Retained per Share4.665.145.46
(=) Adjusted Dividend5.155.635.95
WACC / Discount Rate7.49%7.49%7.49%
Growth Rate5.50%6.50%7.50%
Fair Value$272.82$605.03$1,280.25
Upside / Downside1,394.09%3,213.43%6,911.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,000.016,390.016,805.367,247.717,718.818,220.548,467.15
Payout Ratio7.61%24.09%40.57%57.05%73.52%90.00%92.50%
Projected Dividends (M)456.761,539.362,760.774,134.465,675.077,398.487,832.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.49%7.49%7.49%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,418.631,432.081,445.53
Year 2 PV (M)2,344.712,389.372,434.45
Year 3 PV (M)3,235.983,328.873,423.52
Year 4 PV (M)4,093.424,250.844,412.76
Year 5 PV (M)4,917.985,155.525,402.15
PV of Terminal Value (M)115,912.77121,511.40127,324.30
Equity Value (M)131,923.48138,068.07144,442.71
Shares Outstanding (M)932.05932.05932.05
Fair Value$141.54$148.13$154.97
Upside / Downside675.15%711.25%748.71%

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