Definitive Analysis
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MKS Inc. (MKSI)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$96.81 - $256.82$148.04
Multi-Stage$66.03 - $72.15$69.03
Blended Fair Value$108.54
Current Price$123.77
Upside-12.31%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.27%5.41%0.870.870.770.700.650.640.630.560.540.53
YoY Growth--0.00%13.46%9.24%8.18%1.08%2.65%11.07%5.00%1.09%3.21%
Dividend Yield--1.09%0.66%0.87%0.47%0.35%0.79%0.66%0.49%0.78%1.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)279.00
(-) Cash Dividends Paid (M)59.00
(=) Cash Retained (M)220.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.8034.8820.93
Cash Retained (M)220.00220.00220.00
(-) Cash Required (M)-55.80-34.88-20.93
(=) Excess Retained (M)164.20185.13199.08
(/) Shares Outstanding (M)67.6067.6067.60
(=) Excess Retained per Share2.432.742.94
LTM Dividend per Share0.870.870.87
(+) Excess Retained per Share2.432.742.94
(=) Adjusted Dividend3.303.613.82
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$96.81$148.04$256.82
Upside / Downside-21.78%19.61%107.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)279.00297.14316.45337.02358.92382.25393.72
Payout Ratio21.15%34.92%48.69%62.46%76.23%90.00%92.50%
Projected Dividends (M)59.00103.75154.07210.50273.61344.03364.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)94.2195.1095.99
Year 2 PV (M)127.03129.45131.89
Year 3 PV (M)157.58162.10166.71
Year 4 PV (M)185.98193.13200.49
Year 5 PV (M)212.34222.59233.24
PV of Terminal Value (M)3,686.163,864.204,049.06
Equity Value (M)4,463.294,666.584,877.39
Shares Outstanding (M)67.6067.6067.60
Fair Value$66.03$69.03$72.15
Upside / Downside-46.66%-44.23%-41.71%

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