Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Associated Banc-Corp (ASB)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$28.73 - $94.66$46.73
Multi-Stage$23.95 - $26.15$25.03
Blended Fair Value$35.88
Current Price$25.71
Upside39.57%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.48%9.02%0.850.790.750.710.680.680.640.460.410.38
YoY Growth--7.46%5.20%6.10%3.60%0.20%5.96%38.08%12.62%8.74%6.29%
Dividend Yield--3.76%3.71%4.17%3.10%3.19%5.32%2.91%1.87%1.69%2.12%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)176.03
(-) Cash Dividends Paid (M)154.13
(=) Cash Retained (M)21.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)35.2122.0013.20
Cash Retained (M)21.9021.9021.90
(-) Cash Required (M)-35.21-22.00-13.20
(=) Excess Retained (M)-13.30-0.108.70
(/) Shares Outstanding (M)164.34164.34164.34
(=) Excess Retained per Share-0.080.000.05
LTM Dividend per Share0.940.940.94
(+) Excess Retained per Share-0.080.000.05
(=) Adjusted Dividend0.860.940.99
WACC / Discount Rate7.50%7.50%7.50%
Growth Rate4.39%5.39%6.39%
Fair Value$28.73$46.73$94.66
Upside / Downside11.74%81.77%268.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)176.03185.51195.50206.03217.13228.82235.69
Payout Ratio87.56%88.05%88.53%89.02%89.51%90.00%92.50%
Projected Dividends (M)154.13163.34173.09183.42194.35205.94218.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.50%7.50%7.50%
Growth Rate4.39%5.39%6.39%
Year 1 PV (M)150.50151.94153.38
Year 2 PV (M)146.95149.78152.64
Year 3 PV (M)143.48147.65151.89
Year 4 PV (M)140.09145.54151.14
Year 5 PV (M)136.78143.46150.39
PV of Terminal Value (M)3,218.473,375.623,538.84
Equity Value (M)3,936.284,113.994,298.29
Shares Outstanding (M)164.34164.34164.34
Fair Value$23.95$25.03$26.15
Upside / Downside-6.84%-2.63%1.73%

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