Definitive Analysis
Definitive Analysis

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Intuit Inc. (INTU)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$250.12 - $496.01$346.48
Multi-Stage$190.49 - $207.81$199.00
Blended Fair Value$272.74
Current Price$667.55
Upside-59.14%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS16.21%15.44%4.223.673.152.742.291.991.781.441.251.13
YoY Growth--14.99%16.31%14.86%19.81%15.15%11.98%23.10%15.30%11.01%12.37%
Dividend Yield--0.63%0.60%0.64%0.64%0.38%0.63%0.69%0.68%0.83%1.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,118.00
(-) Cash Dividends Paid (M)1,234.00
(=) Cash Retained (M)2,884.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)823.60514.75308.85
Cash Retained (M)2,884.002,884.002,884.00
(-) Cash Required (M)-823.60-514.75-308.85
(=) Excess Retained (M)2,060.402,369.252,575.15
(/) Shares Outstanding (M)282.00282.00282.00
(=) Excess Retained per Share7.318.409.13
LTM Dividend per Share4.384.384.38
(+) Excess Retained per Share7.318.409.13
(=) Adjusted Dividend11.6812.7813.51
WACC / Discount Rate10.43%10.43%10.43%
Growth Rate5.50%6.50%7.50%
Fair Value$250.12$346.48$496.01
Upside / Downside-62.53%-48.10%-25.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,118.004,385.674,670.744,974.345,297.675,642.025,811.28
Payout Ratio29.97%41.97%53.98%65.99%77.99%90.00%92.50%
Projected Dividends (M)1,234.001,840.792,521.253,282.394,131.825,077.825,375.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.43%10.43%10.43%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,651.311,666.971,682.62
Year 2 PV (M)2,028.932,067.572,106.58
Year 3 PV (M)2,369.552,437.572,506.88
Year 4 PV (M)2,675.742,778.642,884.48
Year 5 PV (M)2,949.883,092.363,240.30
PV of Terminal Value (M)42,043.4544,074.1646,182.59
Equity Value (M)53,718.8656,117.2858,603.46
Shares Outstanding (M)282.00282.00282.00
Fair Value$190.49$199.00$207.81
Upside / Downside-71.46%-70.19%-68.87%

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