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Italgas S.p.A. (IG.MI)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$55.23 - $212.79$157.08
Multi-Stage$32.16 - $35.23$33.66
Blended Fair Value$95.37
Current Price$7.20
Upside1,224.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.61%6.68%0.370.330.310.300.270.260.210.200.000.26
YoY Growth--10.85%6.80%4.16%10.02%6.36%23.47%4.00%0.00%-100.00%36.31%
Dividend Yield--6.83%6.44%6.02%4.95%5.24%4.71%4.10%3.99%0.00%6.65%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)874.51
(-) Cash Dividends Paid (M)317.85
(=) Cash Retained (M)556.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)174.90109.3165.59
Cash Retained (M)556.65556.65556.65
(-) Cash Required (M)-174.90-109.31-65.59
(=) Excess Retained (M)381.75447.34491.06
(/) Shares Outstanding (M)811.12811.12811.12
(=) Excess Retained per Share0.470.550.61
LTM Dividend per Share0.390.390.39
(+) Excess Retained per Share0.470.550.61
(=) Adjusted Dividend0.860.941.00
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate4.68%5.68%6.68%
Fair Value$55.23$157.08$212.79
Upside / Downside667.13%2,081.62%2,855.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)874.51924.21976.741,032.261,090.931,152.941,187.52
Payout Ratio36.35%47.08%57.81%68.54%79.27%90.00%92.50%
Projected Dividends (M)317.85435.09564.64707.50864.771,037.641,098.46

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate4.68%5.68%6.68%
Year 1 PV (M)405.36409.24413.11
Year 2 PV (M)490.11499.52509.01
Year 3 PV (M)572.15588.70605.57
Year 4 PV (M)651.55676.81702.79
Year 5 PV (M)728.38763.84800.67
PV of Terminal Value (M)23,235.2324,366.4225,541.24
Equity Value (M)26,082.7927,304.5328,572.40
Shares Outstanding (M)811.12811.12811.12
Fair Value$32.16$33.66$35.23
Upside / Downside346.62%367.54%389.25%

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