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Atom Empreendimentos e Participações S.A. (ATOM3.SA)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$7.31 - $11.21$9.13
Multi-Stage$16.35 - $17.97$17.14
Blended Fair Value$13.14
Current Price$2.53
Upside419.28%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%0.00%0.320.060.260.000.000.000.000.000.000.00
YoY Growth--421.67%-77.02%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--13.43%2.12%8.95%0.00%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)19.23
(-) Cash Dividends Paid (M)13.83
(=) Cash Retained (M)5.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.852.401.44
Cash Retained (M)5.405.405.40
(-) Cash Required (M)-3.85-2.40-1.44
(=) Excess Retained (M)1.553.003.96
(/) Shares Outstanding (M)23.8023.8023.80
(=) Excess Retained per Share0.070.130.17
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.070.130.17
(=) Adjusted Dividend0.650.710.75
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.31$9.13$11.21
Upside / Downside188.95%260.93%343.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)19.2319.0418.8518.6618.4718.2918.83
Payout Ratio71.92%75.53%79.15%82.77%86.38%90.00%92.50%
Projected Dividends (M)13.8314.3814.9215.4415.9616.4617.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)13.3413.4813.62
Year 2 PV (M)12.8513.1113.38
Year 3 PV (M)12.3412.7213.11
Year 4 PV (M)11.8412.3312.83
Year 5 PV (M)11.3311.9212.53
PV of Terminal Value (M)327.48344.53362.29
Equity Value (M)389.18408.10427.76
Shares Outstanding (M)23.8023.8023.80
Fair Value$16.35$17.14$17.97
Upside / Downside546.22%577.62%610.28%

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