Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

dotdigital Group Plc (DOTD.L)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$1.47 - $3.21$2.11
Multi-Stage$1.07 - $1.17$1.12
Blended Fair Value$1.62
Current Price$0.87
Upside86.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.01%27.09%0.010.010.010.010.010.010.010.010.000.00
YoY Growth--4.78%14.12%3.72%23.85%4.89%16.96%-34.37%135.20%84.91%104.30%
Dividend Yield--1.03%1.12%1.19%0.35%0.63%0.58%0.70%1.18%0.84%0.54%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.49
(-) Cash Dividends Paid (M)5.99
(=) Cash Retained (M)17.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.702.941.76
Cash Retained (M)17.5017.5017.50
(-) Cash Required (M)-4.70-2.94-1.76
(=) Excess Retained (M)12.8014.5615.73
(/) Shares Outstanding (M)310.00310.00310.00
(=) Excess Retained per Share0.040.050.05
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.040.050.05
(=) Adjusted Dividend0.060.070.07
WACC / Discount Rate9.85%9.85%9.85%
Growth Rate5.50%6.50%7.50%
Fair Value$1.47$2.11$3.21
Upside / Downside69.45%142.98%269.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.4925.0126.6428.3730.2232.1833.14
Payout Ratio25.51%38.41%51.31%64.20%77.10%90.00%92.50%
Projected Dividends (M)5.999.6113.6718.2223.3028.9630.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.85%9.85%9.85%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)8.668.758.83
Year 2 PV (M)11.1211.3311.54
Year 3 PV (M)13.3613.7414.13
Year 4 PV (M)15.4116.0016.61
Year 5 PV (M)17.2718.1118.97
PV of Terminal Value (M)267.04279.94293.33
Equity Value (M)332.86347.87363.42
Shares Outstanding (M)310.00310.00310.00
Fair Value$1.07$1.12$1.17
Upside / Downside23.70%29.28%35.06%

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