Definitive Analysis
Definitive Analysis

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Stryker Corporation (0R2S.L)

Company Dividend Discount ModelIndustry: Medical - Equipment & ServicesSector: Healthcare

Valuation Snapshot

Stable Growth$305.87 - $1,514.72$644.26
Multi-Stage$168.33 - $184.00$176.02
Blended Fair Value$410.14
Current Price$369.67
Upside10.95%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.40%10.19%3.152.952.722.462.232.011.821.651.471.35
YoY Growth--7.02%8.37%10.63%10.08%10.93%10.67%10.53%11.97%9.02%12.77%
Dividend Yield--0.85%0.83%0.95%0.92%0.92%1.21%0.93%1.02%1.12%1.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,943.00
(-) Cash Dividends Paid (M)1,268.00
(=) Cash Retained (M)1,675.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)588.60367.88220.73
Cash Retained (M)1,675.001,675.001,675.00
(-) Cash Required (M)-588.60-367.88-220.73
(=) Excess Retained (M)1,086.401,307.131,454.28
(/) Shares Outstanding (M)386.40386.40386.40
(=) Excess Retained per Share2.813.383.76
LTM Dividend per Share3.283.283.28
(+) Excess Retained per Share2.813.383.76
(=) Adjusted Dividend6.096.667.05
WACC / Discount Rate7.60%7.60%7.60%
Growth Rate5.50%6.50%7.50%
Fair Value$305.87$644.26$1,514.72
Upside / Downside-17.26%74.28%309.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,943.003,134.303,338.023,555.003,786.074,032.174,153.13
Payout Ratio43.09%52.47%61.85%71.23%80.62%90.00%92.50%
Projected Dividends (M)1,268.001,644.512,064.612,532.373,052.223,628.953,841.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.60%7.60%7.60%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,513.981,528.331,542.68
Year 2 PV (M)1,749.871,783.201,816.84
Year 3 PV (M)1,975.962,032.692,090.48
Year 4 PV (M)2,192.562,276.882,363.61
Year 5 PV (M)2,399.942,515.862,636.21
PV of Terminal Value (M)55,210.5357,877.2260,645.97
Equity Value (M)65,042.8468,014.1771,095.79
Shares Outstanding (M)386.40386.40386.40
Fair Value$168.33$176.02$184.00
Upside / Downside-54.46%-52.38%-50.23%

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