Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dollarama Inc. (DOL.TO)

Company Dividend Discount ModelIndustry: Discount StoresSector: Consumer Defensive

Valuation Snapshot

Stable Growth$761.58 - $897.26$840.87
Multi-Stage$193.71 - $212.40$202.88
Blended Fair Value$521.87
Current Price$189.38
Upside175.57%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.42%8.80%0.350.270.230.220.200.190.180.170.170.16
YoY Growth--27.73%20.89%4.15%10.40%1.16%5.55%4.83%4.25%4.03%7.84%
Dividend Yield--0.20%0.24%0.26%0.30%0.34%0.44%0.46%0.36%0.42%0.53%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,262.01
(-) Cash Dividends Paid (M)106.67
(=) Cash Retained (M)1,155.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)252.40157.7594.65
Cash Retained (M)1,155.351,155.351,155.35
(-) Cash Required (M)-252.40-157.75-94.65
(=) Excess Retained (M)902.95997.601,060.70
(/) Shares Outstanding (M)279.72279.72279.72
(=) Excess Retained per Share3.233.573.79
LTM Dividend per Share0.380.380.38
(+) Excess Retained per Share3.233.573.79
(=) Adjusted Dividend3.613.954.17
WACC / Discount Rate5.39%5.39%5.39%
Growth Rate5.50%6.50%7.50%
Fair Value$761.58$840.87$897.26
Upside / Downside302.14%344.01%373.79%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,262.011,344.041,431.411,524.451,623.541,729.071,780.94
Payout Ratio8.45%24.76%41.07%57.38%73.69%90.00%92.50%
Projected Dividends (M)106.67332.81587.90874.741,196.391,556.161,647.37

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.39%5.39%5.39%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)312.82315.78318.75
Year 2 PV (M)519.40529.29539.28
Year 3 PV (M)726.40747.26768.50
Year 4 PV (M)933.84969.751,006.69
Year 5 PV (M)1,141.701,196.851,254.10
PV of Terminal Value (M)50,549.5052,991.0655,526.07
Equity Value (M)54,183.6656,749.9959,413.38
Shares Outstanding (M)279.72279.72279.72
Fair Value$193.71$202.88$212.40
Upside / Downside2.28%7.13%12.16%

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