Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Palmer Square Capital BDC Inc. (PSBD)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$4.59 - $7.42$5.87
Multi-Stage$13.53 - $14.90$14.20
Blended Fair Value$10.03
Current Price$12.27
Upside-18.22%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.001.050.000.190.000.000.000.000.000.00
YoY Growth---100.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%6.54%0.00%1.20%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)14.05
(-) Cash Dividends Paid (M)12.69
(=) Cash Retained (M)1.36
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.811.761.05
Cash Retained (M)1.361.361.36
(-) Cash Required (M)-2.81-1.76-1.05
(=) Excess Retained (M)-1.45-0.400.31
(/) Shares Outstanding (M)32.4132.4132.41
(=) Excess Retained per Share-0.04-0.010.01
LTM Dividend per Share0.390.390.39
(+) Excess Retained per Share-0.04-0.010.01
(=) Adjusted Dividend0.350.380.40
WACC / Discount Rate5.40%5.40%5.40%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.59$5.87$7.42
Upside / Downside-62.57%-52.18%-39.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)14.0513.9113.7713.6313.5013.3613.76
Payout Ratio90.32%90.25%90.19%90.13%90.06%90.00%92.50%
Projected Dividends (M)12.6912.5612.4212.2912.1612.0312.73

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.40%5.40%5.40%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)11.7911.9112.03
Year 2 PV (M)10.9611.1811.41
Year 3 PV (M)10.1810.4910.82
Year 4 PV (M)9.469.8510.25
Year 5 PV (M)8.799.259.72
PV of Terminal Value (M)387.46407.64428.65
Equity Value (M)438.64460.32482.88
Shares Outstanding (M)32.4132.4132.41
Fair Value$13.53$14.20$14.90
Upside / Downside10.29%15.74%21.42%

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