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Truist Financial Corporation (TFC)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$90.37 - $239.74$138.19
Multi-Stage$63.94 - $69.75$66.79
Blended Fair Value$102.49
Current Price$45.72
Upside124.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.17%15.32%2.102.102.021.891.840.990.910.760.700.60
YoY Growth--0.00%4.29%6.88%2.52%85.18%8.72%19.80%8.65%17.24%18.47%
Dividend Yield--5.11%5.48%5.91%3.33%3.16%3.22%1.90%1.47%1.57%1.80%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,074.00
(-) Cash Dividends Paid (M)2,699.00
(=) Cash Retained (M)2,375.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,014.80634.25380.55
Cash Retained (M)2,375.002,375.002,375.00
(-) Cash Required (M)-1,014.80-634.25-380.55
(=) Excess Retained (M)1,360.201,740.751,994.45
(/) Shares Outstanding (M)1,317.011,317.011,317.01
(=) Excess Retained per Share1.031.321.51
LTM Dividend per Share2.052.052.05
(+) Excess Retained per Share1.031.321.51
(=) Adjusted Dividend3.083.373.56
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$90.37$138.19$239.74
Upside / Downside97.67%202.25%424.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,074.005,403.815,755.066,129.146,527.536,951.827,160.37
Payout Ratio53.19%60.55%67.92%75.28%82.64%90.00%92.50%
Projected Dividends (M)2,699.003,272.233,908.584,613.845,394.266,256.646,623.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,971.192,999.353,027.52
Year 2 PV (M)3,222.493,283.873,345.83
Year 3 PV (M)3,453.983,553.143,654.17
Year 4 PV (M)3,666.703,807.713,952.75
Year 5 PV (M)3,861.644,048.154,241.81
PV of Terminal Value (M)67,037.8970,275.8573,637.73
Equity Value (M)84,213.9087,968.0891,859.80
Shares Outstanding (M)1,317.011,317.011,317.01
Fair Value$63.94$66.79$69.75
Upside / Downside39.86%46.09%52.56%

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