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Entergy Louisiana, LLC COLLATERAL TR MT (ELC)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$52.44 - $89.71$68.58
Multi-Stage$60.58 - $66.19$63.33
Blended Fair Value$65.95
Current Price$93.19
Upside-29.23%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.65%5.11%2.222.071.901.751.691.611.461.421.381.35
YoY Growth--6.91%9.09%8.59%3.58%5.17%9.86%2.99%2.79%2.16%0.47%
Dividend Yield--2.59%3.96%3.53%3.00%3.40%3.42%3.10%3.61%3.64%3.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,817.59
(-) Cash Dividends Paid (M)1,042.34
(=) Cash Retained (M)775.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)363.52227.20136.32
Cash Retained (M)775.25775.25775.25
(-) Cash Required (M)-363.52-227.20-136.32
(=) Excess Retained (M)411.73548.05638.93
(/) Shares Outstanding (M)442.51442.51442.51
(=) Excess Retained per Share0.931.241.44
LTM Dividend per Share2.362.362.36
(+) Excess Retained per Share0.931.241.44
(=) Adjusted Dividend3.293.593.80
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.65%3.65%4.65%
Fair Value$52.44$68.58$89.71
Upside / Downside-43.73%-26.41%-3.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,817.591,883.891,952.612,023.842,097.662,174.182,239.40
Payout Ratio57.35%63.88%70.41%76.94%83.47%90.00%92.50%
Projected Dividends (M)1,042.341,203.391,374.801,557.121,750.911,956.762,071.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.65%3.65%4.65%
Year 1 PV (M)1,092.571,103.221,113.86
Year 2 PV (M)1,133.261,155.451,177.85
Year 3 PV (M)1,165.351,199.741,234.80
Year 4 PV (M)1,189.711,236.751,285.18
Year 5 PV (M)1,207.151,267.101,329.42
PV of Terminal Value (M)21,018.0722,062.0123,147.02
Equity Value (M)26,806.1128,024.2729,288.13
Shares Outstanding (M)442.51442.51442.51
Fair Value$60.58$63.33$66.19
Upside / Downside-35.00%-32.04%-28.98%

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