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WAM Research Limited (WAX.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$14.38 - $24.04$18.63
Multi-Stage$23.13 - $25.43$24.26
Blended Fair Value$21.44
Current Price$1.11
Upside1,831.67%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS2.32%6.87%0.080.080.080.080.080.080.070.070.060.05
YoY Growth--3.20%2.53%2.51%1.53%1.86%4.69%6.68%13.77%15.08%18.45%
Dividend Yield--7.62%7.66%7.54%6.00%4.66%5.71%5.30%4.47%3.93%3.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)247.52
(-) Cash Dividends Paid (M)25.58
(=) Cash Retained (M)221.94
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)49.5030.9418.56
Cash Retained (M)221.94221.94221.94
(-) Cash Required (M)-49.50-30.94-18.56
(=) Excess Retained (M)172.44191.00203.38
(/) Shares Outstanding (M)203.64203.64203.64
(=) Excess Retained per Share0.850.941.00
LTM Dividend per Share0.130.130.13
(+) Excess Retained per Share0.850.941.00
(=) Adjusted Dividend0.971.061.12
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate0.32%1.32%2.32%
Fair Value$14.38$18.63$24.04
Upside / Downside1,195.26%1,578.13%2,065.91%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)247.52250.80254.12257.49260.90264.35272.28
Payout Ratio10.33%26.27%42.20%58.13%74.07%90.00%92.50%
Projected Dividends (M)25.5865.88107.24149.69193.24237.92251.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate0.32%1.32%2.32%
Year 1 PV (M)60.9061.5162.11
Year 2 PV (M)91.6493.4895.33
Year 3 PV (M)118.24121.81125.46
Year 4 PV (M)141.11146.82152.70
Year 5 PV (M)160.60168.76177.26
PV of Terminal Value (M)4,136.754,347.074,565.85
Equity Value (M)4,709.244,939.455,178.71
Shares Outstanding (M)203.64203.64203.64
Fair Value$23.13$24.26$25.43
Upside / Downside1,983.37%2,085.22%2,191.07%

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