Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

freenet AG (FNTN.DE)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$16.10 - $23.20$19.56
Multi-Stage$28.65 - $31.34$29.97
Blended Fair Value$24.77
Current Price$27.22
Upside-9.01%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.08%1.26%1.771.681.571.720.041.781.781.731.671.62
YoY Growth--5.36%7.02%-8.41%3,879.18%-97.58%0.00%3.12%3.23%3.33%3.45%
Dividend Yield--5.03%6.47%6.57%7.07%0.21%11.08%9.04%6.99%5.49%6.16%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)269.10
(-) Cash Dividends Paid (M)234.10
(=) Cash Retained (M)35.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.8233.6420.18
Cash Retained (M)35.0035.0035.00
(-) Cash Required (M)-53.82-33.64-20.18
(=) Excess Retained (M)-18.821.3614.82
(/) Shares Outstanding (M)118.61118.61118.61
(=) Excess Retained per Share-0.160.010.12
LTM Dividend per Share1.971.971.97
(+) Excess Retained per Share-0.160.010.12
(=) Adjusted Dividend1.811.992.10
WACC / Discount Rate8.96%8.96%8.96%
Growth Rate-2.08%-1.08%-0.08%
Fair Value$16.10$19.56$23.20
Upside / Downside-40.84%-28.13%-14.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)269.10266.20263.33260.49257.69254.91262.56
Payout Ratio86.99%87.59%88.20%88.80%89.40%90.00%92.50%
Projected Dividends (M)234.10233.18232.25231.31230.37229.42242.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.96%8.96%8.96%
Growth Rate-2.08%-1.08%-0.08%
Year 1 PV (M)211.84214.00216.17
Year 2 PV (M)191.69195.62199.60
Year 3 PV (M)173.44178.81184.29
Year 4 PV (M)156.93163.44170.15
Year 5 PV (M)141.98149.38157.09
PV of Terminal Value (M)2,521.922,653.352,790.20
Equity Value (M)3,397.813,554.613,717.49
Shares Outstanding (M)118.61118.61118.61
Fair Value$28.65$29.97$31.34
Upside / Downside5.24%10.10%15.14%

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