Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Rolls-Royce Holdings plc (RRU.DE)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$37.77 - $168.96$88.24
Multi-Stage$79.57 - $87.72$83.57
Blended Fair Value$85.91
Current Price$9.83
Upside773.91%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.010.000.030.000.000.05
YoY Growth---100.00%0.00%0.00%-100.00%0.00%-100.00%0.00%0.00%-100.00%453.95%
Dividend Yield--0.00%0.00%0.01%0.00%1.05%0.00%2.46%0.00%0.00%5.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7,511.50
(-) Cash Dividends Paid (M)507.00
(=) Cash Retained (M)7,004.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,502.30938.94563.36
Cash Retained (M)7,004.507,004.507,004.50
(-) Cash Required (M)-1,502.30-938.94-563.36
(=) Excess Retained (M)5,502.206,065.566,441.14
(/) Shares Outstanding (M)8,442.758,442.758,442.75
(=) Excess Retained per Share0.650.720.76
LTM Dividend per Share0.060.060.06
(+) Excess Retained per Share0.650.720.76
(=) Adjusted Dividend0.710.780.82
WACC / Discount Rate2.55%2.55%2.55%
Growth Rate0.66%1.66%2.66%
Fair Value$37.77$88.24$168.96
Upside / Downside284.23%797.68%1,618.86%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,511.507,635.827,762.197,890.658,021.258,154.008,398.62
Payout Ratio6.75%23.40%40.05%56.70%73.35%90.00%92.50%
Projected Dividends (M)507.001,786.763,108.744,473.995,883.587,338.607,768.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate2.55%2.55%2.55%
Growth Rate0.66%1.66%2.66%
Year 1 PV (M)1,725.161,742.301,759.44
Year 2 PV (M)2,898.082,955.953,014.40
Year 3 PV (M)4,027.034,148.254,271.88
Year 4 PV (M)5,113.225,319.465,531.89
Year 5 PV (M)6,157.856,469.886,794.43
PV of Terminal Value (M)651,876.89684,908.47719,265.70
Equity Value (M)671,798.23705,544.32740,637.73
Shares Outstanding (M)8,442.758,442.758,442.75
Fair Value$79.57$83.57$87.72
Upside / Downside709.47%750.13%792.42%

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