Guaranty Bancshares (Guaranty Bancshares) Intrinsic Value: DCF (Dividends Based) : $38.08 (As of May. 17, 2024)

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What is Guaranty Bancshares Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-17), Guaranty Bancshares's intrinsic value calculated from the Discounted Dividend model is $38.08.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Guaranty Bancshares's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Guaranty Bancshares is 19.46%.

The historical rank and industry rank for Guaranty Bancshares's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Guaranty Bancshares was 1.10. The lowest was 0.26. And the median was 0.53.

GNTY's Price-to-DCF (Dividends Based) is not ranked ^*
in the Banks industry.
Industry Median: 0.68
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Guaranty Bancshares Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Guaranty Bancshares's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Guaranty Bancshares Intrinsic Value: DCF (Dividends Based) Chart

Guaranty Bancshares Annual Data

Trend

Dec04

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

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27.18

94.75

Guaranty Bancshares Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Guaranty Bancshares's Intrinsic Value: DCF (Dividends Based)

For the Banks - Regional subindustry, Guaranty Bancshares's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Guaranty Bancshares's Price-to-DCF (Dividends Based) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Guaranty Bancshares's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Guaranty Bancshares's Price-to-DCF (Dividends Based) falls into.

Guaranty Bancshares Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.42%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 11.20%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Guaranty Bancshares's average Dividend Growth Rate in the past 5 years was 11.20%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 11.20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $2.196.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Guaranty Bancshares's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.112)/(1+0.11) = 1.0018018018018
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

2.196

17.3407

38.08

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(38.08	-	30.67)	/	38.08
	=	19.46 %

Guaranty Bancshares (NYSE:GNTY) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Guaranty Bancshares Intrinsic Value: DCF (Dividends Based) Related Terms

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Guaranty Bancshares (Guaranty Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Guaranty Bancshares Inc (NYSE:GNTY) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

16475 Dallas Parkway, Suite 600, Addison, TX, USA, 75001

Website

https://www.gnty.com

Guaranty Bancshares Inc is a bank holding company conducting banking activities through its wholly-owned subsidiary. The company provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management products and services that are tailored to meet the needs of small and medium-sized businesses, professionals, and individuals. It also provides other services such as Credit cards, Personal Loans, Account Management, Business Checking, Treasury Management, Business savings, and other related services. The company generates its revenue from interest on loans and investments, customer service and loan fees, fees related to the sale of mortgage loans, and trust and wealth management services.

Executives

James S. Bunch	director	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Jeffrey W Brown	director	1400 LAKE HEARN DR, ATLANTA GA 30319
Lisa S. Gallerano	officer: VP and General Counsel	16475 DALLAS PARKWAY, SUITE 600, ADDISON TX 75001
Shalene A. Jacobson	officer: Senior VP & Chief Risk Officer	16475 DALLAS PKWY, SUITE 100, ADDISON TX 75001
Charles A. Cowell	officer: Chm. & EVP-Guaranty Bank&Trust	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Richard W. Baker	director	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Sondra Cunningham	director	P.O. BOX 1158, MT. PLEASANT TX 75455
William Travis Brown	officer: Austin Area Chairman	P.O. BOX 1158, MT. PLEASANT TX 75455
Tyson T Abston	director, officer: Chairman and CEO	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Molly Curl	director	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Martin C Bell	officer: EVP - Guaranty Bank & Trust	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Randall R. Kucera	officer: VP and General Counsel	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Robert P. Sharp	officer: EVP - Guaranty Bank & Trust	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
William D. Priefert	director	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455
Daniel J. Muskrat	officer: EVP & CIO-Guaranty Bank&Trust	201 SOUTH JEFFERSON AVENUE, MOUNT PLEASANT TX 75455