Heidrick & Struggles International, Inc. (HSII) Two-Stage Excess Return Model - Discounting Cash Flows
Heidrick & Struggles International, Inc.
HSII (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Two-Stage Excess Return Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, represented by [Sum of discounted excess returns in Growth Stage], followed by a period of stable growth, represented by [Discounted excess return in terminal stage]. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

Read more: GitHub Documentation

Interactive Assumptions

Results

Estimated Value 20.11 USD
Book value of equity invested 22.73 USD
Sum of discounted excess returns in Growth Stage -0.483 USD
Terminal stage EPS 2.29 USD
Terminal stage Book Value 27.86 USD
Terminal stage Equity Cost 2.43 USD
Discounted excess return in terminal stage -2.13 USD
Excess Returns in the Terminal Stage -3.23 USD
Terminal Cost of Equity (the discount rate) 8.73%
Terminal year's excess return -0.141 USD
Average historical Return on Equity 8.22%
Average historical Payout Ratio 41.41%
Payout Ratio in stable stage 46.97%
Yield of the U.S. 10 Year Treasury Bond 4.36%

Historical and Forecasted Data

In USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 23.08 22.31 22.31 23.37 24.45 25.56 26.7
Ending Book Value 22.31 22.73 23.37 24.45 25.56 26.7 27.86
EPS 0.43 0.4 1.83 1.92 2.01 2.1 2.2
Return on Equity 1.89% 1.77% 8.22% 8.22% 8.22% 8.22% 8.22%
Dividend per Share 0.6 0.6 0.78 0.838 0.9 0.964 1.03
Payout Ratio 139.5% 150% 42.52% 43.63% 44.75% 45.86% 46.97%
Retained Earnings -0.17 -0.2 1.05 1.08 1.11 1.14 1.16
Equity Cost 2.01 1.95 1.95 2.04 2.13 2.23 2.33
Cost of Equity 8.73% 8.73% 8.73% 8.73% 8.73% 8.73% 8.73%
Excess Return -1.58 -1.55 -0.113 -0.118 -0.124 -0.13 -0.135
Discounted Excess Return
-0.104 -0.1 -0.096 -0.093 -0.089

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 24.14 8 8.73 54.41 79.49 72.57 -37.71 46.87 49.3 -48.63 15.41 17.13
Total Stockholders Equity 336.1 465.1 452.8 462.3 410.6 336 267.6 309.1 267.2 212.7 258.6 254.8
Return on Equity 8.22% 1.77% 1.89% 13.25% 23.66% 27.12% -12.2% 17.54% 23.18% -18.81% 6.05% 7%
Dividends Paid to Common Shareholders 11.07 12.28 12.18 12.02 11.85 11.71 11.58 11.46 9.84 9.73 9.64 9.53
Payout Ratio 41.4% 150% 139.5% 22.06% 15.54% 16.13% -30.77% 24.49% 19.92% -20% 62.65% 55.91%
Shares Outstanding 19.36 20.46 20.29 20.03 19.76 19.52 19.3 19.1 18.92 18.71 18.54 18.33
Earnings per Share 1.22 0.4 0.43 2.72 3.86 3.72 -1.95 2.45 2.61 -2.6 0.83 0.93
Dividend per Share 0.571 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.52 0.52 0.52 0.52
Dividend Growth Rate 15.38% 0% 0% 0% 0% 0% 0% 15.38% 0% 0% 0% 0%
Book Value 17.23 22.73 22.31 23.08 20.78 17.22 13.86 16.18 14.12 11.37 13.95 13.9
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Discounting Cash Flows

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