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Ameren Corporation (0HE2.L)

Company Dividend Discount ModelIndustry: General UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$89.30 - $178.72$124.13
Multi-Stage$81.80 - $89.30$85.48
Blended Fair Value$104.81
Current Price$104.38
Upside0.41%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.63%6.23%2.642.442.252.091.821.741.661.591.541.48
YoY Growth--7.85%8.52%7.96%14.37%4.66%4.66%4.64%3.61%3.48%3.08%
Dividend Yield--2.63%3.34%2.61%2.22%2.24%2.39%2.29%2.81%2.81%2.96%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,411.00
(-) Cash Dividends Paid (M)755.00
(=) Cash Retained (M)656.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)282.20176.38105.83
Cash Retained (M)656.00656.00656.00
(-) Cash Required (M)-282.20-176.38-105.83
(=) Excess Retained (M)373.80479.63550.18
(/) Shares Outstanding (M)270.88270.88270.88
(=) Excess Retained per Share1.381.772.03
LTM Dividend per Share2.792.792.79
(+) Excess Retained per Share1.381.772.03
(=) Adjusted Dividend4.174.564.82
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.23%5.23%6.23%
Fair Value$89.30$124.13$178.72
Upside / Downside-14.45%18.92%71.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,411.001,484.851,562.571,644.351,730.421,820.991,875.62
Payout Ratio53.51%60.81%68.10%75.40%82.70%90.00%92.50%
Projected Dividends (M)755.00902.891,064.181,239.891,431.081,638.891,734.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.23%5.23%6.23%
Year 1 PV (M)819.73827.59835.46
Year 2 PV (M)877.18894.09911.17
Year 3 PV (M)927.89954.85982.33
Year 4 PV (M)972.321,010.181,049.13
Year 5 PV (M)1,010.951,060.391,111.74
PV of Terminal Value (M)17,550.1518,408.3219,299.74
Equity Value (M)22,158.2223,155.4224,189.55
Shares Outstanding (M)270.88270.88270.88
Fair Value$81.80$85.48$89.30
Upside / Downside-21.63%-18.10%-14.45%

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