Definitive Analysis
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BCE Inc. (BCE-PA.TO)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$76.13 - $124.55$97.74
Multi-Stage$145.10 - $159.53$152.18
Blended Fair Value$124.96
Current Price$30.20
Upside313.77%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.09%6.68%3.913.773.583.393.223.052.902.722.492.35
YoY Growth--3.64%5.25%5.75%5.28%5.53%5.23%6.65%8.98%6.27%14.58%
Dividend Yield--11.84%8.22%5.92%4.89%5.68%5.28%4.90%4.94%4.24%3.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,334.00
(-) Cash Dividends Paid (M)2,528.00
(=) Cash Retained (M)3,806.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,266.80791.75475.05
Cash Retained (M)3,806.003,806.003,806.00
(-) Cash Required (M)-1,266.80-791.75-475.05
(=) Excess Retained (M)2,539.203,014.253,330.95
(/) Shares Outstanding (M)924.00924.00924.00
(=) Excess Retained per Share2.753.263.60
LTM Dividend per Share2.742.742.74
(+) Excess Retained per Share2.753.263.60
(=) Adjusted Dividend5.486.006.34
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-0.50%0.50%1.50%
Fair Value$76.13$97.74$124.55
Upside / Downside152.08%223.64%312.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,334.006,365.386,396.916,428.606,460.456,492.456,687.22
Payout Ratio39.91%49.93%59.95%69.96%79.98%90.00%92.50%
Projected Dividends (M)2,528.003,178.193,834.754,497.755,167.215,843.216,185.68

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-0.50%0.50%1.50%
Year 1 PV (M)2,950.012,979.663,009.31
Year 2 PV (M)3,303.903,370.643,438.06
Year 3 PV (M)3,596.903,706.453,818.20
Year 4 PV (M)3,835.613,992.154,153.44
Year 5 PV (M)4,026.004,232.434,447.24
PV of Terminal Value (M)116,362.98122,329.37128,538.02
Equity Value (M)134,075.39140,610.70147,404.27
Shares Outstanding (M)924.00924.00924.00
Fair Value$145.10$152.18$159.53
Upside / Downside380.47%403.89%428.24%

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