Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Rolls-Royce Holdings plc (RRU.DE)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$36.40 - $168.96$81.75
Multi-Stage$79.30 - $87.42$83.28
Blended Fair Value$82.51
Current Price$9.83
Upside739.40%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.010.000.030.000.000.05
YoY Growth---100.00%0.00%0.00%-100.00%0.00%-100.00%0.00%0.00%-100.00%453.95%
Dividend Yield--0.00%0.00%0.01%0.00%1.05%0.00%2.46%0.00%0.00%5.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7,511.50
(-) Cash Dividends Paid (M)507.00
(=) Cash Retained (M)7,004.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,502.30938.94563.36
Cash Retained (M)7,004.507,004.507,004.50
(-) Cash Required (M)-1,502.30-938.94-563.36
(=) Excess Retained (M)5,502.206,065.566,441.14
(/) Shares Outstanding (M)8,442.758,442.758,442.75
(=) Excess Retained per Share0.650.720.76
LTM Dividend per Share0.060.060.06
(+) Excess Retained per Share0.650.720.76
(=) Adjusted Dividend0.710.780.82
WACC / Discount Rate2.62%2.62%2.62%
Growth Rate0.66%1.66%2.66%
Fair Value$36.40$81.75$168.96
Upside / Downside270.31%731.60%1,618.86%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,511.507,635.827,762.197,890.658,021.258,154.008,398.62
Payout Ratio6.75%23.40%40.05%56.70%73.35%90.00%92.50%
Projected Dividends (M)507.001,786.763,108.744,473.995,883.587,338.607,768.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate2.62%2.62%2.62%
Growth Rate0.66%1.66%2.66%
Year 1 PV (M)1,723.961,741.091,758.22
Year 2 PV (M)2,894.062,951.853,010.21
Year 3 PV (M)4,018.644,139.614,262.98
Year 4 PV (M)5,099.035,304.705,516.54
Year 5 PV (M)6,136.506,447.446,770.87
PV of Terminal Value (M)649,616.54682,533.59716,771.69
Equity Value (M)669,488.73703,118.29738,090.51
Shares Outstanding (M)8,442.758,442.758,442.75
Fair Value$79.30$83.28$87.42
Upside / Downside706.69%747.21%789.35%

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