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Planet Fitness, Inc. (PLNT)

Company Dividend Discount ModelIndustry: LeisureSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$57.34 - $152.09$87.67
Multi-Stage$38.16 - $41.75$39.92
Blended Fair Value$63.80
Current Price$103.80
Upside-38.54%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.060.000.000.000.000.000.000.022.011.66
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%-100.00%-98.83%20.92%0.00%
Dividend Yield--0.06%0.00%0.00%0.00%0.00%0.00%0.00%0.06%10.43%10.24%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)205.80
(-) Cash Dividends Paid (M)1.17
(=) Cash Retained (M)204.63
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.1625.7215.43
Cash Retained (M)204.63204.63204.63
(-) Cash Required (M)-41.16-25.72-15.43
(=) Excess Retained (M)163.47178.90189.19
(/) Shares Outstanding (M)84.2084.2084.20
(=) Excess Retained per Share1.942.122.25
LTM Dividend per Share0.010.010.01
(+) Excess Retained per Share1.942.122.25
(=) Adjusted Dividend1.962.142.26
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$57.34$87.67$152.09
Upside / Downside-44.76%-15.54%46.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)205.80219.18233.42248.59264.75281.96290.42
Payout Ratio0.57%18.46%36.34%54.23%72.11%90.00%92.50%
Projected Dividends (M)1.1740.4584.83134.81190.92253.77268.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)36.7337.0837.43
Year 2 PV (M)69.9471.2772.62
Year 3 PV (M)100.92103.82106.77
Year 4 PV (M)129.78134.77139.90
Year 5 PV (M)156.63164.19172.05
PV of Terminal Value (M)2,719.022,850.352,986.71
Equity Value (M)3,213.023,361.483,515.47
Shares Outstanding (M)84.2084.2084.20
Fair Value$38.16$39.92$41.75
Upside / Downside-63.24%-61.54%-59.78%

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