Diamond Hill Investment Group Inc (DHIL)

Investment Advice

Latest Price

$174.99

TTM P/E

9.77

Normalized P/E

10.55

Div Yield

Book Value

66.31

P/B Ratio

2.64

Valuation metrics

EPS: $17.91

Book value / share: $65.21

Formula: √(22.5 × EPS × BVPS)

Graham Number

$162.10

7% downside

Norm. op. income: $46M (median of 7yr)

Tax rate: 27%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$139.16

20% downside

Base FCF: $30M (median of recent 5yr)

Growth: -12%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$72.58

59% downside

EPS: $17.91

Target P/E: 11×

Formula: EPS × P/E

P/E Fair Value

$197.01

+13% upside