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Evergy, Inc. (EVRG)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$51.58 - $92.36$68.71
Multi-Stage$56.27 - $61.40$58.79
Blended Fair Value$63.75
Current Price$76.02
Upside-16.15%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.23%13.28%2.572.452.302.142.001.992.040.960.880.80
YoY Growth--4.76%6.51%7.41%7.08%0.54%-2.63%112.91%9.18%9.79%8.52%
Dividend Yield--3.72%4.65%3.77%3.14%3.36%3.62%3.56%1.85%1.62%1.61%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)849.50
(-) Cash Dividends Paid (M)609.20
(=) Cash Retained (M)240.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)169.90106.1963.71
Cash Retained (M)240.30240.30240.30
(-) Cash Required (M)-169.90-106.19-63.71
(=) Excess Retained (M)70.40134.11176.59
(/) Shares Outstanding (M)232.38232.38232.38
(=) Excess Retained per Share0.300.580.76
LTM Dividend per Share2.622.622.62
(+) Excess Retained per Share0.300.580.76
(=) Adjusted Dividend2.923.203.38
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.23%4.23%5.23%
Fair Value$51.58$68.71$92.36
Upside / Downside-32.14%-9.62%21.50%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)849.50885.41922.84961.851,002.521,044.901,076.24
Payout Ratio71.71%75.37%79.03%82.69%86.34%90.00%92.50%
Projected Dividends (M)609.20667.34729.30795.31865.60940.41995.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.23%4.23%5.23%
Year 1 PV (M)605.92611.79617.66
Year 2 PV (M)601.23612.94624.76
Year 3 PV (M)595.31612.78630.58
Year 4 PV (M)588.29611.41635.22
Year 5 PV (M)580.30608.96638.74
PV of Terminal Value (M)10,103.8810,602.8511,121.35
Equity Value (M)13,074.9213,660.7314,268.30
Shares Outstanding (M)232.38232.38232.38
Fair Value$56.27$58.79$61.40
Upside / Downside-25.98%-22.67%-19.23%

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