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Unum Group (UNM)

Company Dividend Discount ModelIndustry: Insurance - LifeSector: Financial Services

Valuation Snapshot

Stable Growth$73.57 - $132.18$98.12
Multi-Stage$76.08 - $83.21$79.58
Blended Fair Value$88.85
Current Price$77.78
Upside14.24%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.28%6.40%1.681.571.441.361.311.301.221.111.040.99
YoY Growth--7.00%9.01%6.18%3.23%1.18%6.31%10.00%7.34%4.82%9.28%
Dividend Yield--2.06%2.92%3.64%4.31%4.72%8.66%3.52%2.33%2.21%3.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)913.10
(-) Cash Dividends Paid (M)306.10
(=) Cash Retained (M)607.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)182.62114.1468.48
Cash Retained (M)607.00607.00607.00
(-) Cash Required (M)-182.62-114.14-68.48
(=) Excess Retained (M)424.38492.86538.52
(/) Shares Outstanding (M)176.39176.39176.39
(=) Excess Retained per Share2.412.793.05
LTM Dividend per Share1.741.741.74
(+) Excess Retained per Share2.412.793.05
(=) Adjusted Dividend4.144.534.79
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.28%4.28%5.28%
Fair Value$73.57$98.12$132.18
Upside / Downside-5.41%26.15%69.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)913.10952.22993.011,035.551,079.911,126.171,159.96
Payout Ratio33.52%44.82%56.11%67.41%78.70%90.00%92.50%
Projected Dividends (M)306.10426.77557.22698.06849.941,013.561,072.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.28%4.28%5.28%
Year 1 PV (M)387.43391.18394.93
Year 2 PV (M)459.22468.16477.18
Year 3 PV (M)522.26537.58553.19
Year 4 PV (M)577.27599.96623.30
Year 5 PV (M)624.94655.79687.84
PV of Terminal Value (M)10,848.9911,384.4611,940.87
Equity Value (M)13,420.1214,037.1214,677.31
Shares Outstanding (M)176.39176.39176.39
Fair Value$76.08$79.58$83.21
Upside / Downside-2.18%2.32%6.98%

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