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Premier Investments Limited (PMV.AX)

Company Dividend Discount ModelIndustry: Apparel - RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$27.20 - $39.55$33.18
Multi-Stage$56.32 - $61.93$59.07
Blended Fair Value$46.12
Current Price$20.65
Upside123.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS13.77%3.66%0.701.221.480.911.030.370.650.550.500.43
YoY Growth---43.05%-17.28%62.19%-11.44%181.69%-43.88%18.10%10.10%16.50%-11.62%
Dividend Yield--3.38%3.69%6.69%4.36%3.84%2.18%4.14%3.18%3.67%2.64%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)596.14
(-) Cash Dividends Paid (M)308.01
(=) Cash Retained (M)288.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)119.2374.5244.71
Cash Retained (M)288.13288.13288.13
(-) Cash Required (M)-119.23-74.52-44.71
(=) Excess Retained (M)168.91213.62243.42
(/) Shares Outstanding (M)160.26160.26160.26
(=) Excess Retained per Share1.051.331.52
LTM Dividend per Share1.921.921.92
(+) Excess Retained per Share1.051.331.52
(=) Adjusted Dividend2.983.253.44
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate-3.05%-2.05%-1.05%
Fair Value$27.20$33.18$39.55
Upside / Downside31.71%60.69%91.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)596.14583.93571.96560.25548.77537.53553.65
Payout Ratio51.67%59.33%67.00%74.67%82.33%90.00%92.50%
Projected Dividends (M)308.01346.46383.22418.32451.82483.77512.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate-3.05%-2.05%-1.05%
Year 1 PV (M)318.83322.11325.40
Year 2 PV (M)324.52331.24338.04
Year 3 PV (M)325.98336.17346.58
Year 4 PV (M)324.00337.58351.58
Year 5 PV (M)319.24336.05353.56
PV of Terminal Value (M)7,412.767,803.028,209.55
Equity Value (M)9,025.339,466.189,924.70
Shares Outstanding (M)160.26160.26160.26
Fair Value$56.32$59.07$61.93
Upside / Downside172.71%186.03%199.89%

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