Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

PPL Corporation (PPL)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$15.41 - $24.73$19.62
Multi-Stage$34.32 - $37.72$35.99
Blended Fair Value$27.81
Current Price$33.89
Upside-17.96%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-8.92%-2.55%1.010.951.061.721.721.611.531.441.391.35
YoY Growth--6.11%-10.55%-38.47%0.31%6.96%5.21%5.69%4.08%2.59%3.83%
Dividend Yield--2.79%3.45%3.81%6.03%5.96%6.51%4.82%5.10%3.71%3.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,092.00
(-) Cash Dividends Paid (M)783.00
(=) Cash Retained (M)309.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)218.40136.5081.90
Cash Retained (M)309.00309.00309.00
(-) Cash Required (M)-218.40-136.50-81.90
(=) Excess Retained (M)90.60172.50227.10
(/) Shares Outstanding (M)742.32742.32742.32
(=) Excess Retained per Share0.120.230.31
LTM Dividend per Share1.051.051.05
(+) Excess Retained per Share0.120.230.31
(=) Adjusted Dividend1.181.291.36
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate-1.25%-0.25%0.75%
Fair Value$15.41$19.62$24.73
Upside / Downside-54.54%-42.10%-27.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,092.001,089.281,086.571,083.861,081.161,078.471,110.83
Payout Ratio71.70%75.36%79.02%82.68%86.34%90.00%92.50%
Projected Dividends (M)783.00820.91858.63896.15933.48970.621,027.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate-1.25%-0.25%0.75%
Year 1 PV (M)764.56772.30780.04
Year 2 PV (M)744.79759.95775.27
Year 3 PV (M)723.98746.20768.87
Year 4 PV (M)702.37731.26761.03
Year 5 PV (M)680.19715.33751.91
PV of Terminal Value (M)21,859.2622,988.6924,164.33
Equity Value (M)25,475.1626,713.7428,001.45
Shares Outstanding (M)742.32742.32742.32
Fair Value$34.32$35.99$37.72
Upside / Downside1.26%6.19%11.31%

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