Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ECP Emerging Growth Limited (ECP.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$2.54 - $3.78$3.13
Multi-Stage$4.72 - $5.20$4.96
Blended Fair Value$4.04
Current Price$1.22
Upside231.40%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.12%29.24%0.040.040.040.040.040.030.030.020.020.01
YoY Growth---1.38%5.05%5.45%10.58%6.25%14.29%27.25%19.20%102.63%188.26%
Dividend Yield--3.48%3.37%4.10%3.54%2.33%3.01%3.00%2.31%2.16%1.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6.94
(-) Cash Dividends Paid (M)1.69
(=) Cash Retained (M)5.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.390.870.52
Cash Retained (M)5.255.255.25
(-) Cash Required (M)-1.39-0.87-0.52
(=) Excess Retained (M)3.864.384.73
(/) Shares Outstanding (M)22.1422.1422.14
(=) Excess Retained per Share0.170.200.21
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share0.170.200.21
(=) Adjusted Dividend0.250.270.29
WACC / Discount Rate7.67%7.67%7.67%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.54$3.13$3.78
Upside / Downside108.24%156.62%209.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6.946.876.806.736.666.606.80
Payout Ratio24.35%37.48%50.61%63.74%76.87%90.00%92.50%
Projected Dividends (M)1.692.573.444.295.125.946.29

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.67%7.67%7.67%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)2.372.392.41
Year 2 PV (M)2.912.973.03
Year 3 PV (M)3.333.443.54
Year 4 PV (M)3.663.813.97
Year 5 PV (M)3.904.104.31
PV of Terminal Value (M)88.3992.9997.78
Equity Value (M)104.56109.70115.05
Shares Outstanding (M)22.1422.1422.14
Fair Value$4.72$4.96$5.20
Upside / Downside287.14%306.18%325.99%

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