Wintrust Financial (Wintrust Financial) Intrinsic Value: DCF (Dividends Based) : $273.71 (As of Apr. 28, 2024)

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What is Wintrust Financial Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-28), Wintrust Financial's intrinsic value calculated from the Discounted Dividend model is $273.71.

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.

Wintrust Financial's Predictability Rank is 5-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Wintrust Financial is 63.83%.

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

WTFC' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.31 Med: 0.34 Max: 1.65
Current: 0.36

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Wintrust Financial was 1.65. The lowest was 0.31. And the median was 0.34.

WTFC's Price-to-DCF (Dividends Based) is ranked better than
80.59% of 546 companies
in the Banks industry
Industry Median: 0.66 vs WTFC: 0.36

Wintrust Financial Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Wintrust Financial'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.

Wintrust Financial Intrinsic Value: DCF (Dividends Based) Chart

Wintrust Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

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287.73

247.91

296.71

Wintrust Financial 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															270.54	298.11	279.73	296.71	-

Competitive Comparison of Wintrust Financial's Intrinsic Value: DCF (Dividends Based)

For the Banks - Regional subindustry, Wintrust Financial'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.

Wintrust Financial's Price-to-DCF (Dividends Based) Distribution in the Banks Industry

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

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

Wintrust Financial 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 4.66%. 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 = 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.
=> Wintrust Financial's average Dividend Growth Rate in the past 10 years was 21.30%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $8.7588.
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.

Wintrust Financial'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+0.2)/(1+0.11) = 1.0810810810811
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)]

8.7588

31.2501

273.71

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(273.71	-	99.01)	/	273.71
	=	63.83 %

Wintrust Financial (NAS:WTFC) 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.

Wintrust Financial Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Wintrust Financial's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Wintrust Financial (Wintrust Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Wintrust Financial Corp (NAS:WTFC) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

WTFCP.PFD:USA WTFCM.PFD:USA

Address

9700 West Higgins Road, Suite 800, Rosemont, IL, USA, 60018

Website

https://www.wintrust.com

Wintrust Financial Corp is a financial holding company operating in the Chicago metropolitan area and southern Wisconsin through its wholly-owned banking subsidiaries. Wintrust conducts its business through three segments: community banking, specialty finance, and wealth management. Among other services, the company provides community-oriented, personal, and commercial banking, as well as the origination and purchase of residential mortgages for sale into the secondary market. A majority of its banks are banks chartered by the state of Illinois with scores of locations. The company has historically grown through both de novo organization and acquisitions. A majority of its loan portfolio is commercial, mostly in real estate. A majority of Wintrust's net revenue is net interest income.

Executives

David Eric Lee	officer: EXECUTIVE VICE PRESIDENT	9700 W HIGGINS ROAD 8TH FLOOR, ROSEMONT IL 60018
Karin Gustafson Teglia	director	WINTRUST FINANCIAL CORPORATION, 9700 W HIGGINS RD 8TH FLOOR, ROSEMONT IL 60018
Timothy Crane	officer: EXECUTIVE VICE PRESIDENT	1228 OAK STREET, WINNETKA IL 60093
Jeffrey D Hahnfeld	officer: EVP-CONTROLLER & CHIEF ACC OFF	WINTRUST FINANCIAL CORP, 9700 W HIGGINS ROAD 8TH FLOOR, ROSEMONT IL 60018
Hackett H Patrick Jr	director	ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
David L Stoehr	officer: Chief Financial Officer
Brian A Kenney	director	GATX CORP, 500 WEST MONROE STREET, CHICAGO IL 60661
Washington Alex E Iii	director	9700 W, HIGGINS RD 8TH FLOOR, ROSEMONT IL 60018
Thomas P Zidar	officer: EXECUTIVE VICE PRESIDENT	640 WAGNER ROAD, GLENVIEW IL 60025
Elizabeth H. Connelly	director	200 N. MILWAUKEE AVENUE, VERNON HILLS IL 60061
Richard B Murphy	officer: Executive Vice President	406 HUDSON, CLARENDON HILLS IL 60514
Edward J Wehmer	director, officer: President	454 BUENA ROAD, LAKE FOREST IL 60045
Suzet M Mckinney	director	9700 W. HIGGINS ROAD, 8TH FLOOR, ROSEMONT IL 60018
Kathleen M Boege	officer: EVP, GENERAL COUNSEL AND SEC	2 NORTH RIVERSIDE PLAZA, SUITE 1300, CHICAGO IL 60606
David A Dykstra	officer: Senior Vice President & COO