Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Cochlear Limited (COH.AX)

Company Dividend Discount ModelIndustry: Medical - DevicesSector: Healthcare

Valuation Snapshot

Stable Growth$447.19 - $2,258.51$925.61
Multi-Stage$254.55 - $277.90$266.01
Blended Fair Value$595.81
Current Price$300.42
Upside98.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.51%8.43%4.243.743.012.951.152.952.772.452.191.83
YoY Growth--13.23%24.47%1.75%156.61%-60.97%6.55%12.85%12.24%19.52%-3.03%
Dividend Yield--1.41%1.16%1.31%1.49%0.46%1.56%1.32%1.23%1.41%1.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)745.70
(-) Cash Dividends Paid (M)523.90
(=) Cash Retained (M)221.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)149.1493.2155.93
Cash Retained (M)221.80221.80221.80
(-) Cash Required (M)-149.14-93.21-55.93
(=) Excess Retained (M)72.66128.59165.87
(/) Shares Outstanding (M)65.6665.6665.66
(=) Excess Retained per Share1.111.962.53
LTM Dividend per Share7.987.987.98
(+) Excess Retained per Share1.111.962.53
(=) Adjusted Dividend9.099.9410.50
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate5.50%6.50%7.50%
Fair Value$447.19$925.61$2,258.51
Upside / Downside48.86%208.10%651.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)745.70794.17845.79900.77959.321,021.671,052.32
Payout Ratio70.26%74.20%78.15%82.10%86.05%90.00%92.50%
Projected Dividends (M)523.90589.31661.02739.55825.50919.51973.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)542.33547.47552.61
Year 2 PV (M)559.81570.48581.24
Year 3 PV (M)576.39592.94609.80
Year 4 PV (M)592.08614.85638.27
Year 5 PV (M)606.92636.24666.67
PV of Terminal Value (M)13,836.9314,505.2615,199.17
Equity Value (M)16,714.4717,467.2318,247.76
Shares Outstanding (M)65.6665.6665.66
Fair Value$254.55$266.01$277.90
Upside / Downside-15.27%-11.45%-7.50%

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