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Ralliant Corp. (RAL)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$12.71 - $18.29$15.43
Multi-Stage$19.82 - $21.82$20.80
Blended Fair Value$18.12
Current Price$43.15
Upside-58.02%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%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)203.30
(-) Cash Dividends Paid (M)5.60
(=) Cash Retained (M)197.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)40.6625.4115.25
Cash Retained (M)197.70197.70197.70
(-) Cash Required (M)-40.66-25.41-15.25
(=) Excess Retained (M)157.04172.29182.45
(/) Shares Outstanding (M)113.02113.02113.02
(=) Excess Retained per Share1.391.521.61
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share1.391.521.61
(=) Adjusted Dividend1.441.571.66
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.71$15.43$18.29
Upside / Downside-70.55%-64.24%-57.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)203.30201.27199.25197.26195.29193.34199.14
Payout Ratio2.75%20.20%37.65%55.10%72.55%90.00%92.50%
Projected Dividends (M)5.6040.6675.02108.69141.68174.00184.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)36.9037.2737.65
Year 2 PV (M)61.7763.0364.31
Year 3 PV (M)81.2083.7186.27
Year 4 PV (M)96.03100.01104.11
Year 5 PV (M)107.01112.58118.38
PV of Terminal Value (M)1,857.701,954.432,055.16
Equity Value (M)2,240.602,351.042,465.89
Shares Outstanding (M)113.02113.02113.02
Fair Value$19.82$20.80$21.82
Upside / Downside-54.06%-51.79%-49.44%

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