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Zions Bancorporation, National Association (0M3L.L)

Company Dividend Discount ModelIndustry: BanksSector: Financial Services

Valuation Snapshot

Stable Growth$135.79 - $362.50$208.04
Multi-Stage$93.51 - $102.12$97.74
Blended Fair Value$152.89
Current Price$55.62
Upside174.88%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.94%9.94%1.681.921.831.771.761.771.600.880.730.73
YoY Growth---12.06%4.83%3.07%0.77%-0.38%10.17%82.95%19.61%-0.14%12.35%
Dividend Yield--3.43%4.49%6.22%2.73%3.18%7.15%3.44%1.68%1.68%1.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)848.00
(-) Cash Dividends Paid (M)263.00
(=) Cash Retained (M)585.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)169.60106.0063.60
Cash Retained (M)585.00585.00585.00
(-) Cash Required (M)-169.60-106.00-63.60
(=) Excess Retained (M)415.40479.00521.40
(/) Shares Outstanding (M)147.22147.22147.22
(=) Excess Retained per Share2.823.253.54
LTM Dividend per Share1.791.791.79
(+) Excess Retained per Share2.823.253.54
(=) Adjusted Dividend4.615.045.33
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$135.79$208.04$362.50
Upside / Downside144.14%274.05%551.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)848.00903.12961.821,024.341,090.921,161.831,196.69
Payout Ratio31.01%42.81%54.61%66.41%78.20%90.00%92.50%
Projected Dividends (M)263.00386.64525.24680.22853.131,045.651,106.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)351.13354.45357.78
Year 2 PV (M)433.18441.43449.76
Year 3 PV (M)509.48524.10539.00
Year 4 PV (M)580.29602.61625.56
Year 5 PV (M)645.91677.11709.50
PV of Terminal Value (M)11,246.2511,789.4512,353.44
Equity Value (M)13,766.2414,389.1615,035.05
Shares Outstanding (M)147.22147.22147.22
Fair Value$93.51$97.74$102.12
Upside / Downside68.12%75.72%83.61%

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