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Cardinal Health, Inc. (0HTG.L)

Company Dividend Discount ModelIndustry: Medical - Equipment & ServicesSector: Healthcare

Valuation Snapshot

Stable Growth$50.39 - $73.63$61.61
Multi-Stage$78.66 - $86.33$82.42
Blended Fair Value$72.02
Current Price$156.96
Upside-54.12%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-2.79%0.72%2.052.072.182.322.382.362.402.412.402.13
YoY Growth---1.00%-4.95%-6.08%-2.44%0.70%-1.39%-0.69%0.69%12.70%11.30%
Dividend Yield--1.31%1.88%2.51%3.48%4.81%5.03%5.08%4.47%3.58%2.74%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,595.00
(-) Cash Dividends Paid (M)495.00
(=) Cash Retained (M)1,100.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)319.00199.38119.63
Cash Retained (M)1,100.001,100.001,100.00
(-) Cash Required (M)-319.00-199.38-119.63
(=) Excess Retained (M)781.00900.63980.38
(/) Shares Outstanding (M)240.75240.75240.75
(=) Excess Retained per Share3.243.744.07
LTM Dividend per Share2.062.062.06
(+) Excess Retained per Share3.243.744.07
(=) Adjusted Dividend5.305.806.13
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.28%-0.28%0.72%
Fair Value$50.39$61.61$73.63
Upside / Downside-67.89%-60.75%-53.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,595.001,590.461,585.941,581.431,576.931,572.451,619.62
Payout Ratio31.03%42.83%54.62%66.41%78.21%90.00%92.50%
Projected Dividends (M)495.00681.16866.251,050.291,233.271,415.211,498.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.28%-0.28%0.72%
Year 1 PV (M)618.09624.35630.62
Year 2 PV (M)713.27727.80742.47
Year 3 PV (M)784.74808.83833.41
Year 4 PV (M)836.15870.55906.00
Year 5 PV (M)870.66915.66962.51
PV of Terminal Value (M)15,114.6515,895.8816,709.09
Equity Value (M)18,937.5619,843.0820,784.09
Shares Outstanding (M)240.75240.75240.75
Fair Value$78.66$82.42$86.33
Upside / Downside-49.88%-47.49%-45.00%

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