Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Eastman Chemical Company (EMN)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$56.55 - $87.67$70.96
Multi-Stage$107.33 - $117.89$112.51
Blended Fair Value$91.73
Current Price$63.05
Upside45.49%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.02%6.08%3.243.223.263.213.062.942.722.532.332.04
YoY Growth--0.80%-1.31%1.60%4.75%4.37%7.86%7.43%8.82%14.29%13.33%
Dividend Yield--3.68%3.21%3.87%2.86%2.78%6.30%3.47%2.40%2.88%2.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)699.00
(-) Cash Dividends Paid (M)380.00
(=) Cash Retained (M)319.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)139.8087.3852.43
Cash Retained (M)319.00319.00319.00
(-) Cash Required (M)-139.80-87.38-52.43
(=) Excess Retained (M)179.20231.63266.58
(/) Shares Outstanding (M)116.85116.85116.85
(=) Excess Retained per Share1.531.982.28
LTM Dividend per Share3.253.253.25
(+) Excess Retained per Share1.531.982.28
(=) Adjusted Dividend4.795.235.53
WACC / Discount Rate7.23%7.23%7.23%
Growth Rate-1.13%-0.13%0.87%
Fair Value$56.55$70.96$87.67
Upside / Downside-10.31%12.54%39.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)699.00698.06697.11696.17695.23694.30715.12
Payout Ratio54.36%61.49%68.62%75.75%82.87%90.00%92.50%
Projected Dividends (M)380.00429.24478.35527.32576.16624.87661.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.23%7.23%7.23%
Growth Rate-1.13%-0.13%0.87%
Year 1 PV (M)396.28400.29404.30
Year 2 PV (M)407.71416.00424.38
Year 3 PV (M)414.95427.67440.64
Year 4 PV (M)418.57435.76453.48
Year 5 PV (M)419.10440.73463.24
PV of Terminal Value (M)10,484.7311,025.8211,589.02
Equity Value (M)12,541.3513,146.2813,775.07
Shares Outstanding (M)116.85116.85116.85
Fair Value$107.33$112.51$117.89
Upside / Downside70.23%78.44%86.97%

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