Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Reach plc (RCH.L)

Company Dividend Discount ModelIndustry: PublishingSector: Communication Services

Valuation Snapshot

Stable Growth$1.61 - $2.23$1.92
Multi-Stage$2.70 - $2.96$2.83
Blended Fair Value$2.38
Current Price$0.73
Upside224.83%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.52%0.00%0.070.070.070.070.000.060.050.050.050.04
YoY Growth--0.43%0.87%5.05%0.00%-100.00%6.29%14.38%4.79%16.80%0.00%
Dividend Yield--8.73%9.67%7.55%2.41%0.00%4.45%8.67%6.29%4.49%2.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)91.40
(-) Cash Dividends Paid (M)46.40
(=) Cash Retained (M)45.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.2811.436.86
Cash Retained (M)45.0045.0045.00
(-) Cash Required (M)-18.28-11.43-6.86
(=) Excess Retained (M)26.7233.5838.15
(/) Shares Outstanding (M)319.05319.05319.05
(=) Excess Retained per Share0.080.110.12
LTM Dividend per Share0.150.150.15
(+) Excess Retained per Share0.080.110.12
(=) Adjusted Dividend0.230.250.26
WACC / Discount Rate10.03%10.03%10.03%
Growth Rate-3.65%-2.65%-1.65%
Fair Value$1.61$1.92$2.23
Upside / Downside120.39%162.76%204.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)91.4088.9886.6184.3282.0879.9082.30
Payout Ratio50.77%58.61%66.46%74.31%82.15%90.00%92.50%
Projected Dividends (M)46.4052.1557.5662.6567.4371.9176.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.03%10.03%10.03%
Growth Rate-3.65%-2.65%-1.65%
Year 1 PV (M)46.9147.4047.88
Year 2 PV (M)46.5747.5448.53
Year 3 PV (M)45.5947.0348.49
Year 4 PV (M)44.1446.0047.92
Year 5 PV (M)42.3444.5846.92
PV of Terminal Value (M)637.26671.03706.21
Equity Value (M)862.82903.58945.95
Shares Outstanding (M)319.05319.05319.05
Fair Value$2.70$2.83$2.96
Upside / Downside269.44%286.89%305.04%

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