Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Franco-Nevada Corporation (FNV)

Company Dividend Discount ModelIndustry: GoldSector: Basic Materials

Valuation Snapshot

Stable Growth$65.53 - $114.49$86.43
Multi-Stage$52.58 - $57.31$54.90
Blended Fair Value$70.67
Current Price$222.91
Upside-68.30%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.89%10.33%1.261.211.020.930.800.720.710.650.610.49
YoY Growth--4.03%17.91%10.02%15.95%12.08%1.54%8.19%6.52%25.50%3.75%
Dividend Yield--0.80%1.00%0.70%0.58%0.64%0.72%0.95%0.95%0.93%0.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)919.80
(-) Cash Dividends Paid (M)266.60
(=) Cash Retained (M)653.20
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)183.96114.9868.99
Cash Retained (M)653.20653.20653.20
(-) Cash Required (M)-183.96-114.98-68.99
(=) Excess Retained (M)469.24538.23584.22
(/) Shares Outstanding (M)192.86192.86192.86
(=) Excess Retained per Share2.432.793.03
LTM Dividend per Share1.381.381.38
(+) Excess Retained per Share2.432.793.03
(=) Adjusted Dividend3.824.174.41
WACC / Discount Rate11.64%11.64%11.64%
Growth Rate5.50%6.50%7.50%
Fair Value$65.53$86.43$114.49
Upside / Downside-70.60%-61.23%-48.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)919.80979.591,043.261,111.071,183.291,260.211,298.01
Payout Ratio28.98%41.19%53.39%65.59%77.80%90.00%92.50%
Projected Dividends (M)266.60403.47557.00728.79920.561,134.191,200.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate11.64%11.64%11.64%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)358.00361.39364.79
Year 2 PV (M)438.54446.89455.32
Year 3 PV (M)509.13523.74538.64
Year 4 PV (M)570.63592.57615.14
Year 5 PV (M)623.82653.95685.23
PV of Terminal Value (M)7,641.318,010.388,393.59
Equity Value (M)10,141.4210,588.9311,052.71
Shares Outstanding (M)192.86192.86192.86
Fair Value$52.58$54.90$57.31
Upside / Downside-76.41%-75.37%-74.29%

High-Yield Dividend Screener

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