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Evergy, Inc. (EVRG)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$51.43 - $91.93$68.45
Multi-Stage$56.10 - $61.21$58.61
Blended Fair Value$63.53
Current Price$76.02
Upside-16.43%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.23%13.28%2.572.452.302.142.001.992.040.960.880.80
YoY Growth--4.76%6.51%7.41%7.08%0.54%-2.63%112.91%9.18%9.79%8.52%
Dividend Yield--3.72%4.65%3.77%3.14%3.36%3.62%3.56%1.85%1.62%1.61%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)849.50
(-) Cash Dividends Paid (M)609.20
(=) Cash Retained (M)240.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)169.90106.1963.71
Cash Retained (M)240.30240.30240.30
(-) Cash Required (M)-169.90-106.19-63.71
(=) Excess Retained (M)70.40134.11176.59
(/) Shares Outstanding (M)232.38232.38232.38
(=) Excess Retained per Share0.300.580.76
LTM Dividend per Share2.622.622.62
(+) Excess Retained per Share0.300.580.76
(=) Adjusted Dividend2.923.203.38
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.23%4.23%5.23%
Fair Value$51.43$68.45$91.93
Upside / Downside-32.35%-9.96%20.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)849.50885.41922.84961.851,002.521,044.901,076.24
Payout Ratio71.71%75.37%79.03%82.69%86.34%90.00%92.50%
Projected Dividends (M)609.20667.34729.30795.31865.60940.41995.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.23%4.23%5.23%
Year 1 PV (M)605.82611.69617.55
Year 2 PV (M)601.03612.74624.55
Year 3 PV (M)595.01612.47630.27
Year 4 PV (M)587.90611.01634.80
Year 5 PV (M)579.83608.46638.21
PV of Terminal Value (M)10,065.7510,562.8411,079.38
Equity Value (M)13,035.3313,619.2014,224.76
Shares Outstanding (M)232.38232.38232.38
Fair Value$56.10$58.61$61.21
Upside / Downside-26.21%-22.90%-19.48%

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