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A2A S.p.A. (A2A.MI)

Company Dividend Discount ModelIndustry: Diversified UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$20.01 - $46.50$43.58
Multi-Stage$6.93 - $7.58$7.25
Blended Fair Value$25.41
Current Price$2.23
Upside1,039.61%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.98%12.11%0.100.100.090.080.080.070.060.050.040.04
YoY Growth--5.96%6.71%14.11%2.90%10.55%21.11%17.65%21.43%11.50%10.78%
Dividend Yield--4.58%5.85%6.15%5.11%4.97%6.16%3.55%3.15%2.83%3.17%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)732.00
(-) Cash Dividends Paid (M)351.00
(=) Cash Retained (M)381.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)146.4091.5054.90
Cash Retained (M)381.00381.00381.00
(-) Cash Required (M)-146.40-91.50-54.90
(=) Excess Retained (M)234.60289.50326.10
(/) Shares Outstanding (M)3,130.713,130.713,130.71
(=) Excess Retained per Share0.070.090.10
LTM Dividend per Share0.110.110.11
(+) Excess Retained per Share0.070.090.10
(=) Adjusted Dividend0.190.200.22
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate5.50%6.50%7.50%
Fair Value$20.01$43.58$46.50
Upside / Downside797.19%1,854.12%1,985.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)732.00779.58830.25884.22941.691,002.901,032.99
Payout Ratio47.95%56.36%64.77%73.18%81.59%90.00%92.50%
Projected Dividends (M)351.00439.38537.76647.07768.33902.61955.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)408.74412.61416.49
Year 2 PV (M)465.38474.24483.19
Year 3 PV (M)520.93535.89551.12
Year 4 PV (M)575.42597.55620.31
Year 5 PV (M)628.85659.22690.76
PV of Terminal Value (M)19,094.8220,017.1120,974.69
Equity Value (M)21,694.1422,696.6223,736.56
Shares Outstanding (M)3,130.713,130.713,130.71
Fair Value$6.93$7.25$7.58
Upside / Downside210.74%225.10%239.99%

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