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Visteon Corporation (VC)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$78.73 - $113.31$95.61
Multi-Stage$122.80 - $135.15$128.86
Blended Fair Value$112.23
Current Price$119.86
Upside-6.36%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.500.0462.610.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%-100.00%1,300.00%-99.94%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.71%0.03%63.93%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)309.00
(-) Cash Dividends Paid (M)8.00
(=) Cash Retained (M)301.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)61.8038.6323.18
Cash Retained (M)301.00301.00301.00
(-) Cash Required (M)-61.80-38.63-23.18
(=) Excess Retained (M)239.20262.38277.83
(/) Shares Outstanding (M)27.7327.7327.73
(=) Excess Retained per Share8.639.4610.02
LTM Dividend per Share0.290.290.29
(+) Excess Retained per Share8.639.4610.02
(=) Adjusted Dividend8.929.7510.31
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$78.73$95.61$113.31
Upside / Downside-34.31%-20.23%-5.46%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)309.00305.91302.85299.82296.82293.86302.67
Payout Ratio2.59%20.07%37.55%55.04%72.52%90.00%92.50%
Projected Dividends (M)8.0061.40113.73165.01215.25264.47279.97

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)55.7156.2856.85
Year 2 PV (M)93.6395.5597.49
Year 3 PV (M)123.26127.07130.96
Year 4 PV (M)145.89151.94158.17
Year 5 PV (M)162.65171.12179.94
PV of Terminal Value (M)2,823.562,970.593,123.68
Equity Value (M)3,404.703,572.553,747.09
Shares Outstanding (M)27.7327.7327.73
Fair Value$122.80$128.86$135.15
Upside / Downside2.46%7.51%12.76%

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