Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Vector Group Ltd. (VGR)

Company Dividend Discount ModelIndustry: TobaccoSector: Consumer Defensive

Valuation Snapshot

Stable Growth$71.24 - $236.67$221.61
Multi-Stage$119.86 - $132.58$126.09
Blended Fair Value$173.85
Current Price$10.94
Upside1,489.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS-10.95%-1.36%0.820.830.860.831.551.461.371.291.221.09
YoY Growth---1.58%-2.68%2.78%-46.18%5.72%6.56%6.30%5.74%12.44%15.63%
Dividend Yield--7.66%6.94%7.11%5.97%16.43%14.14%7.43%7.19%6.50%6.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)199.67
(-) Cash Dividends Paid (M)126.49
(=) Cash Retained (M)73.19
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.9324.9614.98
Cash Retained (M)73.1973.1973.19
(-) Cash Required (M)-39.93-24.96-14.98
(=) Excess Retained (M)33.2548.2358.21
(/) Shares Outstanding (M)153.96153.96153.96
(=) Excess Retained per Share0.220.310.38
LTM Dividend per Share0.820.820.82
(+) Excess Retained per Share0.220.310.38
(=) Adjusted Dividend1.041.131.20
WACC / Discount Rate-1.95%-1.95%-1.95%
Growth Rate-3.36%-2.36%-1.36%
Fair Value$71.24$221.61$236.67
Upside / Downside551.22%1,925.67%2,063.35%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)199.67194.97190.37185.89181.50177.23182.54
Payout Ratio63.35%68.68%74.01%79.34%84.67%90.00%92.50%
Projected Dividends (M)126.49133.90140.89147.48153.68159.50168.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-1.95%-1.95%-1.95%
Growth Rate-3.36%-2.36%-1.36%
Year 1 PV (M)135.16136.56137.96
Year 2 PV (M)143.56146.55149.57
Year 3 PV (M)151.70156.45161.31
Year 4 PV (M)159.56166.27173.19
Year 5 PV (M)167.17176.00185.20
PV of Terminal Value (M)17,697.2418,631.9819,605.81
Equity Value (M)18,454.4019,413.8220,413.04
Shares Outstanding (M)153.96153.96153.96
Fair Value$119.86$126.09$132.58
Upside / Downside995.64%1,052.60%1,111.92%

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