Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sound Point Acquisition Corp I, Ltd (SPCMU)

Company Dividend Discount ModelIndustry: Shell CompaniesSector: Financial Services

Valuation Snapshot

Stable Growth$7.78 - $11.01$9.38
Multi-Stage$11.25 - $12.37$11.80
Blended Fair Value$10.59
Current Price$10.54
Upside0.45%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%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)38.51
(-) Cash Dividends Paid (M)0.51
(=) Cash Retained (M)38.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.704.812.89
Cash Retained (M)38.0038.0038.00
(-) Cash Required (M)-7.70-4.81-2.89
(=) Excess Retained (M)30.3033.1835.11
(/) Shares Outstanding (M)32.3432.3432.34
(=) Excess Retained per Share0.941.031.09
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.941.031.09
(=) Adjusted Dividend0.951.041.10
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.78$9.38$11.01
Upside / Downside-26.20%-11.04%4.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)38.5138.1237.7437.3736.9936.6237.72
Payout Ratio1.33%19.06%36.80%54.53%72.27%90.00%92.50%
Projected Dividends (M)0.517.2713.8920.3826.7332.9634.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)6.546.616.67
Year 2 PV (M)11.2511.4811.71
Year 3 PV (M)14.8515.3115.78
Year 4 PV (M)17.5318.2619.01
Year 5 PV (M)19.4520.4721.52
PV of Terminal Value (M)294.19309.51325.46
Equity Value (M)363.82381.63400.16
Shares Outstanding (M)32.3432.3432.34
Fair Value$11.25$11.80$12.37
Upside / Downside6.72%11.95%17.38%

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