Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Virtus Artificial Intelligence & Technology Opportunities Fund (AIO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$52.06 - $74.79$63.17
Multi-Stage$84.80 - $93.06$88.85
Blended Fair Value$76.01
Current Price$24.82
Upside206.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS0.00%0.00%1.781.951.800.000.000.000.000.000.000.00
YoY Growth---8.88%8.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--7.10%10.43%10.32%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)255.42
(-) Cash Dividends Paid (M)97.08
(=) Cash Retained (M)158.34
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.0831.9319.16
Cash Retained (M)158.34158.34158.34
(-) Cash Required (M)-51.08-31.93-19.16
(=) Excess Retained (M)107.26126.42139.19
(/) Shares Outstanding (M)34.3734.3734.37
(=) Excess Retained per Share3.123.684.05
LTM Dividend per Share2.822.822.82
(+) Excess Retained per Share3.123.684.05
(=) Adjusted Dividend5.946.506.87
WACC / Discount Rate9.19%9.19%9.19%
Growth Rate-2.00%-1.00%0.00%
Fair Value$52.06$63.17$74.79
Upside / Downside109.75%154.50%201.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)255.42252.87250.34247.84245.36242.90250.19
Payout Ratio38.01%48.41%58.80%69.20%79.60%90.00%92.50%
Projected Dividends (M)97.08122.40147.21171.51195.31218.61231.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.19%9.19%9.19%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)110.97112.10113.23
Year 2 PV (M)120.99123.47125.98
Year 3 PV (M)127.79131.74135.78
Year 4 PV (M)131.93137.40143.03
Year 5 PV (M)133.88140.85148.11
PV of Terminal Value (M)2,289.222,408.432,532.55
Equity Value (M)2,914.783,053.993,198.67
Shares Outstanding (M)34.3734.3734.37
Fair Value$84.80$88.85$93.06
Upside / Downside241.66%257.98%274.94%

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