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Princeton Bancorp, Inc. (BPRN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$60.33 - $161.04$92.42
Multi-Stage$42.28 - $46.14$44.18
Blended Fair Value$68.30
Current Price$31.84
Upside114.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS42.82%0.00%1.101.070.930.630.390.180.030.000.000.00
YoY Growth--2.16%15.32%47.15%61.98%111.64%540.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.59%3.53%2.93%2.19%1.36%0.79%0.09%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)17.76
(-) Cash Dividends Paid (M)8.27
(=) Cash Retained (M)9.49
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.552.221.33
Cash Retained (M)9.499.499.49
(-) Cash Required (M)-3.55-2.22-1.33
(=) Excess Retained (M)5.947.278.16
(/) Shares Outstanding (M)6.946.946.94
(=) Excess Retained per Share0.861.051.18
LTM Dividend per Share1.191.191.19
(+) Excess Retained per Share0.861.051.18
(=) Adjusted Dividend2.052.242.37
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$60.33$92.42$161.04
Upside / Downside89.47%190.27%405.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)17.7618.9120.1421.4522.8524.3325.06
Payout Ratio46.56%55.25%63.93%72.62%81.31%90.00%92.50%
Projected Dividends (M)8.2710.4512.8815.5818.5821.9023.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)9.499.589.67
Year 2 PV (M)10.6210.8211.03
Year 3 PV (M)11.6712.0012.34
Year 4 PV (M)12.6413.1213.62
Year 5 PV (M)13.5314.1814.86
PV of Terminal Value (M)235.52246.90258.71
Equity Value (M)293.46306.60320.23
Shares Outstanding (M)6.946.946.94
Fair Value$42.28$44.18$46.14
Upside / Downside32.80%38.75%44.91%

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