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AB Sustainable Global Thematic Fund Class R (ATERX)

Company Dividend Discount ModelIndustry: Asset Management - GlobalSector: Financial Services

Valuation Snapshot

Stable Growth$132.69 - $267.34$184.90
Multi-Stage$118.52 - $129.51$123.92
Blended Fair Value$154.41
Current Price$147.42
Upside4.74%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%6.57%2.802.692.672.612.550.002.101.991.821.64
YoY Growth--4.07%0.82%2.52%2.17%0.00%-100.00%5.24%9.43%11.13%10.56%
Dividend Yield--1.90%2.09%1.86%1.84%3.05%0.00%2.57%2.91%3.15%2.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)350.00
(-) Cash Dividends Paid (M)128.00
(=) Cash Retained (M)222.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)70.0043.7526.25
Cash Retained (M)222.00222.00222.00
(-) Cash Required (M)-70.00-43.75-26.25
(=) Excess Retained (M)152.00178.25195.75
(/) Shares Outstanding (M)45.6645.6645.66
(=) Excess Retained per Share3.333.904.29
LTM Dividend per Share2.802.802.80
(+) Excess Retained per Share3.333.904.29
(=) Adjusted Dividend6.136.717.09
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.26%5.26%6.26%
Fair Value$132.69$184.90$267.34
Upside / Downside-9.99%25.42%81.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)350.00368.42387.80408.21429.69452.29465.86
Payout Ratio36.57%47.26%57.94%68.63%79.31%90.00%92.50%
Projected Dividends (M)128.00174.10224.70280.15340.80407.06430.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate4.26%5.26%6.26%
Year 1 PV (M)158.09159.61161.13
Year 2 PV (M)185.28188.85192.46
Year 3 PV (M)209.76215.85222.06
Year 4 PV (M)231.71240.72250.00
Year 5 PV (M)251.31263.60276.36
PV of Terminal Value (M)4,375.654,589.554,811.74
Equity Value (M)5,411.805,658.185,913.74
Shares Outstanding (M)45.6645.6645.66
Fair Value$118.52$123.92$129.51
Upside / Downside-19.60%-15.94%-12.15%

High-Yield Dividend Screener

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