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Acuity Brands, Inc. (AYI)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$164.97 - $285.97$216.90
Multi-Stage$174.26 - $191.00$182.47
Blended Fair Value$199.68
Current Price$326.47
Upside-38.84%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.19%-0.97%0.650.580.530.570.600.660.660.680.720.72
YoY Growth--13.19%8.33%-7.18%-5.24%-8.17%0.00%-2.80%-5.73%-0.87%0.88%
Dividend Yield--0.20%0.18%0.30%0.30%0.30%0.55%0.50%0.52%0.42%0.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)396.60
(-) Cash Dividends Paid (M)20.60
(=) Cash Retained (M)376.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)79.3249.5829.75
Cash Retained (M)376.00376.00376.00
(-) Cash Required (M)-79.32-49.58-29.75
(=) Excess Retained (M)296.68326.43346.26
(/) Shares Outstanding (M)31.6531.6531.65
(=) Excess Retained per Share9.3710.3110.94
LTM Dividend per Share0.650.650.65
(+) Excess Retained per Share9.3710.3110.94
(=) Adjusted Dividend10.0210.9611.59
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.85%3.85%4.85%
Fair Value$164.97$216.90$285.97
Upside / Downside-49.47%-33.56%-12.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)396.60411.86427.71444.17461.26479.01493.38
Payout Ratio5.19%22.16%39.12%56.08%73.04%90.00%92.50%
Projected Dividends (M)20.6091.25167.31249.08336.90431.11456.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.85%3.85%4.85%
Year 1 PV (M)82.8383.6484.45
Year 2 PV (M)137.87140.56143.29
Year 3 PV (M)186.33191.82197.41
Year 4 PV (M)228.78237.81247.11
Year 5 PV (M)265.76278.94292.63
PV of Terminal Value (M)4,613.644,842.345,080.02
Equity Value (M)5,515.225,775.116,044.89
Shares Outstanding (M)31.6531.6531.65
Fair Value$174.26$182.47$191.00
Upside / Downside-46.62%-44.11%-41.50%

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