Definitive Analysis
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NCR Corporation (NCR)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$46.04 - $66.26$55.91
Multi-Stage$71.71 - $78.93$75.25
Blended Fair Value$65.58
Current Price$15.73
Upside316.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202220212020201920182017201620152014
DPS0.00%0.00%0.000.110.100.060.000.000.000.000.000.00
YoY Growth---100.00%6.67%66.67%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.47%0.26%0.16%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)943.00
(-) Cash Dividends Paid (M)16.00
(=) Cash Retained (M)927.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)188.60117.8870.73
Cash Retained (M)927.00927.00927.00
(-) Cash Required (M)-188.60-117.88-70.73
(=) Excess Retained (M)738.40809.13856.28
(/) Shares Outstanding (M)144.70144.70144.70
(=) Excess Retained per Share5.105.595.92
LTM Dividend per Share0.110.110.11
(+) Excess Retained per Share5.105.595.92
(=) Adjusted Dividend5.215.706.03
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$46.04$55.91$66.26
Upside / Downside192.68%255.40%321.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)943.00933.57924.23914.99905.84896.78923.69
Payout Ratio1.70%19.36%37.02%54.68%72.34%90.00%92.50%
Projected Dividends (M)16.00180.71342.13500.31655.28807.11854.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)163.97165.64167.32
Year 2 PV (M)281.67287.45293.29
Year 3 PV (M)373.73385.29397.08
Year 4 PV (M)444.14462.55481.53
Year 5 PV (M)496.36522.21549.12
PV of Terminal Value (M)8,616.879,065.579,532.77
Equity Value (M)10,376.7510,888.7211,421.11
Shares Outstanding (M)144.70144.70144.70
Fair Value$71.71$75.25$78.93
Upside / Downside355.89%378.39%401.78%

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