* Note: Prices are in Million (M) USD.
Description:
Victory Capital Holdings, Inc., is a global asset management company. The company is headquartered in San Antonio, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $127 M
Debt : $964 M
EBITDA : $466 M
Net Debt (Debt - Cash): $837 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Asset Management
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 9.70
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $304 M
Average Revenue: $621 M
Revenue Converted To Free Cash FLow(%): 49%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 10.51%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $893 M
Revenue 4 Years Ago (2020-12-31): $775 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $66 M
Share Count 5 Years Ago (2020-12-31): $74 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $7.40
Trailing 12-Month Earnings Per Share (EPS): $6.44
Average Earnings Per Share (EPS): $6.92
Dividend Per Share (DPS): $2
Payout Ratio: 24%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 17%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $67
52-Week Low: $43
Threshold Price (15% Above 52-Week Low): $49
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,750 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Victory Capital Holdings Inc (VCTR) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 10, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 12.50.
Value-Trades has assined P/E value 12.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.92.
The fair value of Victory Capital Holdings Inc (VCTR) stock should be (12.50 x $6.92) = $86.5
