Definitive Analysis
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Edison International (EIX)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$193.74 - $513.94$296.25
Multi-Stage$134.96 - $147.32$141.03
Blended Fair Value$218.64
Current Price$55.28
Upside295.51%
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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$193.74$296.25$513.94
Upside / Downside250.47%435.91%829.71%

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,527.001,541.481,555.95
Year 2 PV (M)1,777.831,811.691,845.87
Year 3 PV (M)2,010.452,068.162,126.97
Year 4 PV (M)2,225.792,311.392,399.44
Year 5 PV (M)2,424.752,541.862,663.46
PV of Terminal Value (M)42,093.5644,126.7046,237.64
Equity Value (M)52,059.3954,401.2856,829.34
Shares Outstanding (M)385.75385.75385.75
Fair Value$134.96$141.03$147.32
Upside / Downside144.13%155.11%166.50%

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