Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

SLM Corporation (SLM)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$83.39 - $317.71$140.68
Multi-Stage$103.88 - $114.14$108.91
Blended Fair Value$124.79
Current Price$27.68
Upside350.84%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.17%0.00%0.470.480.530.290.220.240.000.000.000.00
YoY Growth---2.04%-10.38%86.83%30.44%-9.32%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.59%2.24%4.30%1.55%1.22%3.35%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)623.22
(-) Cash Dividends Paid (M)108.86
(=) Cash Retained (M)514.36
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)124.6477.9046.74
Cash Retained (M)514.36514.36514.36
(-) Cash Required (M)-124.64-77.90-46.74
(=) Excess Retained (M)389.71436.46467.62
(/) Shares Outstanding (M)211.91211.91211.91
(=) Excess Retained per Share1.842.062.21
LTM Dividend per Share0.510.510.51
(+) Excess Retained per Share1.842.062.21
(=) Adjusted Dividend2.352.572.72
WACC / Discount Rate5.55%5.55%5.55%
Growth Rate2.65%3.65%4.65%
Fair Value$83.39$140.68$317.71
Upside / Downside201.28%408.22%1,047.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)623.22645.97669.55693.99719.33745.59767.96
Payout Ratio17.47%31.97%46.48%60.99%75.49%90.00%92.50%
Projected Dividends (M)108.86206.54311.21423.24543.05671.03710.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.55%5.55%5.55%
Growth Rate2.65%3.65%4.65%
Year 1 PV (M)193.80195.69197.57
Year 2 PV (M)273.99279.36284.77
Year 3 PV (M)349.64359.96370.48
Year 4 PV (M)420.93437.58454.71
Year 5 PV (M)488.05512.29537.49
PV of Terminal Value (M)20,286.4721,294.0522,341.26
Equity Value (M)22,012.8923,078.9224,186.29
Shares Outstanding (M)211.91211.91211.91
Fair Value$103.88$108.91$114.14
Upside / Downside275.29%293.46%312.34%

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