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The Toronto-Dominion Bank NCUM 5Y PFD SR18 (TD-PFJ.TO)

Company Dividend Discount ModelIndustry: BanksSector: Financial Services

Valuation Snapshot

Stable Growth$560.48 - $2,371.86$1,396.66
Multi-Stage$332.43 - $364.04$347.94
Blended Fair Value$872.30
Current Price$25.69
Upside3,295.49%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.78%8.43%4.113.353.833.192.102.962.662.422.191.98
YoY Growth--22.92%-12.60%19.98%51.78%-29.03%11.29%10.05%10.58%10.57%8.03%
Dividend Yield--16.26%15.18%17.41%14.51%8.35%11.76%10.57%9.63%8.71%7.88%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)20,893.00
(-) Cash Dividends Paid (M)7,537.00
(=) Cash Retained (M)13,356.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4,178.602,611.631,566.98
Cash Retained (M)13,356.0013,356.0013,356.00
(-) Cash Required (M)-4,178.60-2,611.63-1,566.98
(=) Excess Retained (M)9,177.4010,744.3811,789.03
(/) Shares Outstanding (M)1,740.151,740.151,740.15
(=) Excess Retained per Share5.276.176.77
LTM Dividend per Share4.334.334.33
(+) Excess Retained per Share5.276.176.77
(=) Adjusted Dividend9.6110.5111.11
WACC / Discount Rate6.58%6.58%6.58%
Growth Rate4.78%5.78%6.78%
Fair Value$560.48$1,396.66$2,371.86
Upside / Downside2,081.72%5,336.59%9,132.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)20,893.0022,101.3023,379.4724,731.5726,161.8627,674.8728,505.11
Payout Ratio36.07%46.86%57.64%68.43%79.21%90.00%92.50%
Projected Dividends (M)7,537.0010,356.5413,477.0016,923.7420,724.0824,907.3826,367.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.58%6.58%6.58%
Growth Rate4.78%5.78%6.78%
Year 1 PV (M)9,625.399,717.259,809.11
Year 2 PV (M)11,641.2611,864.5212,089.90
Year 3 PV (M)13,586.4813,979.1914,379.40
Year 4 PV (M)15,462.8416,061.6216,677.63
Year 5 PV (M)17,272.1118,112.1818,984.62
PV of Terminal Value (M)510,887.44535,735.51561,541.13
Equity Value (M)578,475.52605,470.26633,481.78
Shares Outstanding (M)1,740.151,740.151,740.15
Fair Value$332.43$347.94$364.04
Upside / Downside1,194.00%1,254.38%1,317.04%

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