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Eversource Energy (ES)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$85.86 - $229.20$131.54
Multi-Stage$62.45 - $68.02$65.19
Blended Fair Value$98.36
Current Price$71.14
Upside38.27%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.59%7.74%2.712.492.332.182.021.801.741.631.531.44
YoY Growth--8.98%6.86%6.78%8.16%12.28%3.61%6.32%6.66%6.55%11.48%
Dividend Yield--4.37%4.23%2.98%2.48%2.33%2.30%2.45%2.77%2.60%2.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,343.59
(-) Cash Dividends Paid (M)1,072.70
(=) Cash Retained (M)270.89
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)268.72167.95100.77
Cash Retained (M)270.89270.89270.89
(-) Cash Required (M)-268.72-167.95-100.77
(=) Excess Retained (M)2.17102.94170.12
(/) Shares Outstanding (M)368.94368.94368.94
(=) Excess Retained per Share0.010.280.46
LTM Dividend per Share2.912.912.91
(+) Excess Retained per Share0.010.280.46
(=) Adjusted Dividend2.913.193.37
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$85.86$131.54$229.20
Upside / Downside20.69%84.90%222.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,343.591,430.921,523.931,622.981,728.481,840.831,896.05
Payout Ratio79.84%81.87%83.90%85.94%87.97%90.00%92.50%
Projected Dividends (M)1,072.701,171.501,278.621,394.721,520.501,656.751,753.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,063.901,073.981,084.07
Year 2 PV (M)1,054.531,074.611,094.89
Year 3 PV (M)1,044.621,074.611,105.16
Year 4 PV (M)1,034.231,074.001,114.91
Year 5 PV (M)1,023.401,072.831,124.15
PV of Terminal Value (M)17,818.7518,679.4019,572.99
Equity Value (M)23,039.4224,049.4425,096.18
Shares Outstanding (M)368.94368.94368.94
Fair Value$62.45$65.19$68.02
Upside / Downside-12.22%-8.37%-4.38%

High-Yield Dividend Screener

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