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Corebridge Financial, Inc. (CRBG)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.64 - $18.19$15.35
Multi-Stage$21.19 - $23.23$22.19
Blended Fair Value$18.77
Current Price$32.05
Upside-41.44%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018
DPS-19.65%0.00%0.983.101.582.840.852.934.790.000.000.00
YoY Growth---68.41%96.58%-44.45%234.11%-70.94%-38.88%0.00%0.00%0.00%0.00%
Dividend Yield--3.10%10.96%9.85%13.71%4.10%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)991.00
(-) Cash Dividends Paid (M)521.00
(=) Cash Retained (M)470.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)198.20123.8874.33
Cash Retained (M)470.00470.00470.00
(-) Cash Required (M)-198.20-123.88-74.33
(=) Excess Retained (M)271.80346.13395.68
(/) Shares Outstanding (M)554.98554.98554.98
(=) Excess Retained per Share0.490.620.71
LTM Dividend per Share0.940.940.94
(+) Excess Retained per Share0.490.620.71
(=) Adjusted Dividend1.431.561.65
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.64$15.35$18.19
Upside / Downside-60.58%-52.12%-43.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)991.00981.09971.28961.57951.95942.43970.70
Payout Ratio52.57%60.06%67.54%75.03%82.51%90.00%92.50%
Projected Dividends (M)521.00589.23656.04721.46785.50848.19897.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)534.72540.18545.64
Year 2 PV (M)540.28551.37562.56
Year 3 PV (M)539.20555.87572.89
Year 4 PV (M)532.76554.84577.60
Year 5 PV (M)522.06549.25577.55
PV of Terminal Value (M)9,089.799,563.1110,055.96
Equity Value (M)11,758.8112,314.6112,892.19
Shares Outstanding (M)554.98554.98554.98
Fair Value$21.19$22.19$23.23
Upside / Downside-33.89%-30.77%-27.52%

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