Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Learning Technologies Group plc (LTG.L)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$2.09 - $5.47$3.18
Multi-Stage$1.47 - $1.60$1.53
Blended Fair Value$2.36
Current Price$0.84
Upside179.67%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS39.50%45.38%0.020.010.010.010.000.000.000.000.000.00
YoY Growth--39.62%49.41%9.54%38.18%67.31%87.26%79.63%58.93%318.69%-64.33%
Dividend Yield--1.90%0.96%0.42%0.37%0.34%0.42%0.23%0.25%0.18%0.06%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)73.93
(-) Cash Dividends Paid (M)31.28
(=) Cash Retained (M)42.64
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.799.245.54
Cash Retained (M)42.6442.6442.64
(-) Cash Required (M)-14.79-9.24-5.54
(=) Excess Retained (M)27.8633.4037.10
(/) Shares Outstanding (M)820.26820.26820.26
(=) Excess Retained per Share0.030.040.05
LTM Dividend per Share0.040.040.04
(+) Excess Retained per Share0.030.040.05
(=) Adjusted Dividend0.070.080.08
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate5.50%6.50%7.50%
Fair Value$2.09$3.18$5.47
Upside / Downside147.96%277.51%548.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)73.9378.7383.8589.3095.10101.28104.32
Payout Ratio42.32%51.85%61.39%70.93%80.46%90.00%92.50%
Projected Dividends (M)31.2840.8251.4763.3476.5291.1696.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)37.0537.4137.76
Year 2 PV (M)42.4143.2144.03
Year 3 PV (M)47.3648.7250.11
Year 4 PV (M)51.9453.9355.99
Year 5 PV (M)56.1658.8761.68
PV of Terminal Value (M)968.361,015.131,063.69
Equity Value (M)1,203.271,257.271,313.26
Shares Outstanding (M)820.26820.26820.26
Fair Value$1.47$1.53$1.60
Upside / Downside74.01%81.82%89.92%

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