Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker / Industry / Sector

Northrop Grumman Corporation (0K92.L)

Company Dividend Discount ModelIndustry: Industrial - Capital GoodsSector: Industrials

Valuation Snapshot

Stable Growth$1,172.48 - $5,445.86$2,628.49
Multi-Stage$857.59 - $940.18$898.11
Blended Fair Value$1,763.30
Current Price$609.32
Upside189.39%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.15%7.74%8.187.707.266.786.586.075.664.754.424.16
YoY Growth--6.27%6.08%7.02%3.15%8.30%7.19%19.16%7.66%6.14%7.10%
Dividend Yield--1.60%1.63%1.57%1.52%2.03%2.01%2.07%1.36%1.86%2.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,019.00
(-) Cash Dividends Paid (M)1,263.00
(=) Cash Retained (M)2,756.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)803.80502.38301.43
Cash Retained (M)2,756.002,756.002,756.00
(-) Cash Required (M)-803.80-502.38-301.43
(=) Excess Retained (M)1,952.202,253.632,454.58
(/) Shares Outstanding (M)144.93144.93144.93
(=) Excess Retained per Share13.4715.5516.94
LTM Dividend per Share8.718.718.71
(+) Excess Retained per Share13.4715.5516.94
(=) Adjusted Dividend22.1924.2725.65
WACC / Discount Rate6.12%6.12%6.12%
Growth Rate4.15%5.15%6.15%
Fair Value$1,172.48$2,628.49$5,445.86
Upside / Downside92.42%331.38%793.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,019.004,225.984,443.624,672.484,913.115,166.145,321.13
Payout Ratio31.43%43.14%54.86%66.57%78.29%90.00%92.50%
Projected Dividends (M)1,263.001,823.112,437.573,110.483,846.244,649.534,922.04

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.12%6.12%6.12%
Growth Rate4.15%5.15%6.15%
Year 1 PV (M)1,701.621,717.961,734.30
Year 2 PV (M)2,123.522,164.492,205.86
Year 3 PV (M)2,529.162,602.712,677.68
Year 4 PV (M)2,919.003,032.733,149.76
Year 5 PV (M)3,293.493,454.673,622.10
PV of Terminal Value (M)111,718.95117,186.30122,865.64
Equity Value (M)124,285.74130,158.87136,255.32
Shares Outstanding (M)144.93144.93144.93
Fair Value$857.59$898.11$940.18
Upside / Downside40.74%47.40%54.30%

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