Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sonic Healthcare Limited (SHL.AX)

Company Dividend Discount ModelIndustry: Medical - Diagnostics & ResearchSector: Healthcare

Valuation Snapshot

Stable Growth$76.11 - $420.69$146.52
Multi-Stage$60.72 - $66.38$63.50
Blended Fair Value$105.01
Current Price$26.79
Upside291.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS4.95%6.21%1.071.041.000.950.870.840.780.500.590.46
YoY Growth--2.93%3.97%5.48%9.60%2.93%8.01%55.70%-14.69%28.26%-22.05%
Dividend Yield--4.01%4.07%2.82%2.88%2.26%2.77%2.88%2.04%2.43%2.13%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,024.69
(-) Cash Dividends Paid (M)1,013.45
(=) Cash Retained (M)11.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)204.94128.0976.85
Cash Retained (M)11.2511.2511.25
(-) Cash Required (M)-204.94-128.09-76.85
(=) Excess Retained (M)-193.69-116.84-65.61
(/) Shares Outstanding (M)478.60478.60478.60
(=) Excess Retained per Share-0.40-0.24-0.14
LTM Dividend per Share2.122.122.12
(+) Excess Retained per Share-0.40-0.24-0.14
(=) Adjusted Dividend1.711.871.98
WACC / Discount Rate6.55%6.55%6.55%
Growth Rate4.21%5.21%6.21%
Fair Value$76.11$146.52$420.69
Upside / Downside184.09%446.91%1,470.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,024.691,078.071,134.241,193.331,255.501,320.911,360.53
Payout Ratio98.90%97.12%95.34%93.56%91.78%90.00%92.50%
Projected Dividends (M)1,013.451,047.051,081.401,116.491,152.301,188.821,258.49

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.55%6.55%6.55%
Growth Rate4.21%5.21%6.21%
Year 1 PV (M)973.30982.64991.98
Year 2 PV (M)934.42952.44970.64
Year 3 PV (M)896.79922.86949.42
Year 4 PV (M)860.36893.87928.34
Year 5 PV (M)825.10865.46907.38
PV of Terminal Value (M)24,570.4525,772.1827,020.49
Equity Value (M)29,060.4330,389.4531,768.24
Shares Outstanding (M)478.60478.60478.60
Fair Value$60.72$63.50$66.38
Upside / Downside126.65%137.02%147.77%

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