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Zions Bancorporation N.A. - 6.9 (ZIONL)

Company Dividend Discount ModelIndustry: BanksSector: Financial Services

Valuation Snapshot

Stable Growth$135.75 - $360.11$207.58
Multi-Stage$93.76 - $102.39$98.00
Blended Fair Value$152.79
Current Price$56.58
Upside170.04%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.94%9.94%1.681.921.831.771.761.771.600.880.730.73
YoY Growth---12.06%4.83%3.07%0.77%-0.38%10.17%82.95%19.44%0.00%12.35%
Dividend Yield--3.38%4.46%6.10%2.70%3.20%6.60%3.43%1.66%1.75%3.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)852.00
(-) Cash Dividends Paid (M)273.00
(=) Cash Retained (M)579.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)170.40106.5063.90
Cash Retained (M)579.00579.00579.00
(-) Cash Required (M)-170.40-106.50-63.90
(=) Excess Retained (M)408.60472.50515.10
(/) Shares Outstanding (M)147.22147.22147.22
(=) Excess Retained per Share2.783.213.50
LTM Dividend per Share1.851.851.85
(+) Excess Retained per Share2.783.213.50
(=) Adjusted Dividend4.635.065.35
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$135.75$207.58$360.11
Upside / Downside139.93%266.87%536.46%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)852.00907.38966.361,029.171,096.071,167.311,202.33
Payout Ratio32.04%43.63%55.23%66.82%78.41%90.00%92.50%
Projected Dividends (M)273.00395.92533.68687.66859.411,050.581,112.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)359.50362.91366.31
Year 2 PV (M)440.00448.38456.84
Year 3 PV (M)514.79529.57544.63
Year 4 PV (M)584.18606.64629.75
Year 5 PV (M)648.43679.75712.26
PV of Terminal Value (M)11,256.6611,800.3612,364.87
Equity Value (M)13,803.5514,427.6015,074.66
Shares Outstanding (M)147.22147.22147.22
Fair Value$93.76$98.00$102.39
Upside / Downside65.71%73.20%80.97%

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