Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Essity AB (publ) (ESSITY-A.ST)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$181.72 - $286.78$229.77
Multi-Stage$249.29 - $272.95$260.90
Blended Fair Value$245.34
Current Price$245.80
Upside-0.19%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.15%0.00%7.867.367.106.856.345.835.830.000.000.00
YoY Growth--6.89%3.58%3.69%8.00%8.72%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.76%2.89%2.40%3.08%2.30%1.91%2.19%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)12,322.00
(-) Cash Dividends Paid (M)5,711.00
(=) Cash Retained (M)6,611.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2,464.401,540.25924.15
Cash Retained (M)6,611.006,611.006,611.00
(-) Cash Required (M)-2,464.40-1,540.25-924.15
(=) Excess Retained (M)4,146.605,070.755,686.85
(/) Shares Outstanding (M)692.18692.18692.18
(=) Excess Retained per Share5.997.338.22
LTM Dividend per Share8.258.258.25
(+) Excess Retained per Share5.997.338.22
(=) Adjusted Dividend14.2415.5816.47
WACC / Discount Rate8.86%8.86%8.86%
Growth Rate0.95%1.95%2.95%
Fair Value$181.72$229.77$286.78
Upside / Downside-26.07%-6.52%16.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)12,322.0012,562.2312,807.1413,056.8213,311.3813,570.8913,978.02
Payout Ratio46.35%55.08%63.81%72.54%81.27%90.00%92.50%
Projected Dividends (M)5,711.006,919.078,172.089,471.3110,818.1012,213.8012,929.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.86%8.86%8.86%
Growth Rate0.95%1.95%2.95%
Year 1 PV (M)6,293.556,355.896,418.23
Year 2 PV (M)6,761.266,895.887,031.82
Year 3 PV (M)7,127.757,341.687,559.85
Year 4 PV (M)7,405.277,703.098,009.79
Year 5 PV (M)7,604.817,989.018,388.58
PV of Terminal Value (M)137,362.08144,301.71151,519.03
Equity Value (M)172,554.73180,587.26188,927.31
Shares Outstanding (M)692.18692.18692.18
Fair Value$249.29$260.90$272.95
Upside / Downside1.42%6.14%11.04%

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