Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Vontier Corporation (VNT)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$20.81 - $30.49$25.47
Multi-Stage$35.27 - $38.84$37.02
Blended Fair Value$31.25
Current Price$42.16
Upside-25.89%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS0.00%0.00%0.100.100.110.090.000.000.000.000.000.00
YoY Growth---1.94%-2.52%25.20%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.31%0.23%0.39%0.34%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)406.10
(-) Cash Dividends Paid (M)14.80
(=) Cash Retained (M)391.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)81.2250.7630.46
Cash Retained (M)391.30391.30391.30
(-) Cash Required (M)-81.22-50.76-30.46
(=) Excess Retained (M)310.08340.54360.84
(/) Shares Outstanding (M)149.05149.05149.05
(=) Excess Retained per Share2.082.282.42
LTM Dividend per Share0.100.100.10
(+) Excess Retained per Share2.082.282.42
(=) Adjusted Dividend2.182.382.52
WACC / Discount Rate8.27%8.27%8.27%
Growth Rate-2.00%-1.00%0.00%
Fair Value$20.81$25.47$30.49
Upside / Downside-50.64%-39.58%-27.68%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)406.10402.04398.02394.04390.10386.20397.78
Payout Ratio3.64%20.92%38.19%55.46%72.73%90.00%92.50%
Projected Dividends (M)14.8084.09151.99218.52283.71347.58367.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.27%8.27%8.27%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)76.8877.6778.45
Year 2 PV (M)127.06129.67132.30
Year 3 PV (M)167.03172.20177.47
Year 4 PV (M)198.28206.50214.97
Year 5 PV (M)222.11233.67245.71
PV of Terminal Value (M)4,465.514,698.044,940.15
Equity Value (M)5,256.885,517.755,789.07
Shares Outstanding (M)149.05149.05149.05
Fair Value$35.27$37.02$38.84
Upside / Downside-16.34%-12.19%-7.88%

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