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Edison International (EIX)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$194.71 - $519.80$298.32
Multi-Stage$135.38 - $147.79$141.47
Blended Fair Value$219.90
Current Price$55.28
Upside297.79%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.14%9.97%3.112.882.722.562.412.102.041.831.621.41
YoY Growth--7.73%5.90%6.28%6.47%14.57%2.79%11.46%12.94%15.07%17.49%
Dividend Yield--5.27%4.09%3.86%3.65%4.11%3.83%3.26%2.88%2.04%1.96%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,186.00
(-) Cash Dividends Paid (M)1,257.00
(=) Cash Retained (M)1,929.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)637.20398.25238.95
Cash Retained (M)1,929.001,929.001,929.00
(-) Cash Required (M)-637.20-398.25-238.95
(=) Excess Retained (M)1,291.801,530.751,690.05
(/) Shares Outstanding (M)385.75385.75385.75
(=) Excess Retained per Share3.353.974.38
LTM Dividend per Share3.263.263.26
(+) Excess Retained per Share3.353.974.38
(=) Adjusted Dividend6.617.237.64
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$194.71$298.32$519.80
Upside / Downside252.23%439.65%840.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,186.003,393.093,613.643,848.534,098.684,365.104,496.05
Payout Ratio39.45%49.56%59.67%69.78%79.89%90.00%92.50%
Projected Dividends (M)1,257.001,681.722,156.342,685.563,274.473,928.594,158.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,527.251,541.731,556.21
Year 2 PV (M)1,778.421,812.291,846.48
Year 3 PV (M)2,011.452,069.192,128.02
Year 4 PV (M)2,227.262,312.922,401.02
Year 5 PV (M)2,426.752,543.962,665.66
PV of Terminal Value (M)42,253.0244,293.8646,412.81
Equity Value (M)52,224.1554,573.9557,010.20
Shares Outstanding (M)385.75385.75385.75
Fair Value$135.38$141.47$147.79
Upside / Downside144.90%155.92%167.35%

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