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CTEEP - Companhia de Transmissão de Energia Elétrica Paulista S.A. (TRPL4.SA)

Company Dividend Discount ModelIndustry: Independent Power ProducersSector: Utilities

Valuation Snapshot

Stable Growth$520.18 - $998.43$935.68
Multi-Stage$155.75 - $170.50$162.99
Blended Fair Value$549.33
Current Price$24.30
Upside2,160.63%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS-21.95%165.77%0.910.154.031.131.373.130.970.170.550.64
YoY Growth--511.67%-96.32%255.44%-17.02%-56.37%224.51%479.82%-69.93%-13.91%1,246,541.18%
Dividend Yield--3.64%0.68%15.25%4.48%7.21%16.16%5.85%1.02%4.58%6.47%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,308.07
(-) Cash Dividends Paid (M)1,239.07
(=) Cash Retained (M)2,069.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)661.61413.51248.11
Cash Retained (M)2,069.002,069.002,069.00
(-) Cash Required (M)-661.61-413.51-248.11
(=) Excess Retained (M)1,407.391,655.491,820.90
(/) Shares Outstanding (M)658.93658.93658.93
(=) Excess Retained per Share2.142.512.76
LTM Dividend per Share1.881.881.88
(+) Excess Retained per Share2.142.512.76
(=) Adjusted Dividend4.024.394.64
WACC / Discount Rate6.31%6.31%6.31%
Growth Rate5.50%6.50%7.50%
Fair Value$520.18$935.68$998.43
Upside / Downside2,040.64%3,750.53%4,008.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,308.073,523.103,752.103,995.994,255.724,532.354,668.32
Payout Ratio37.46%47.96%58.47%68.98%79.49%90.00%92.50%
Projected Dividends (M)1,239.071,689.852,193.992,756.533,382.934,079.114,318.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.31%6.31%6.31%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,574.551,589.481,604.40
Year 2 PV (M)1,904.821,941.101,977.73
Year 3 PV (M)2,229.932,293.952,359.18
Year 4 PV (M)2,549.962,648.022,748.89
Year 5 PV (M)2,864.943,003.323,146.99
PV of Terminal Value (M)91,500.6995,920.21100,508.87
Equity Value (M)102,624.90107,396.08112,346.05
Shares Outstanding (M)658.93658.93658.93
Fair Value$155.75$162.99$170.50
Upside / Downside540.93%570.73%601.64%

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