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Intuit Inc. (INTU)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$342.55 - $908.68$523.79
Multi-Stage$236.02 - $257.78$246.70
Blended Fair Value$385.25
Current Price$667.55
Upside-42.29%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS16.21%15.44%4.223.673.152.742.291.991.781.441.251.13
YoY Growth--14.99%16.31%14.86%19.81%15.15%11.98%23.10%15.30%11.01%12.37%
Dividend Yield--0.63%0.60%0.64%0.64%0.38%0.63%0.69%0.68%0.83%1.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,118.00
(-) Cash Dividends Paid (M)1,234.00
(=) Cash Retained (M)2,884.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)823.60514.75308.85
Cash Retained (M)2,884.002,884.002,884.00
(-) Cash Required (M)-823.60-514.75-308.85
(=) Excess Retained (M)2,060.402,369.252,575.15
(/) Shares Outstanding (M)282.00282.00282.00
(=) Excess Retained per Share7.318.409.13
LTM Dividend per Share4.384.384.38
(+) Excess Retained per Share7.318.409.13
(=) Adjusted Dividend11.6812.7813.51
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$342.55$523.79$908.68
Upside / Downside-48.69%-21.54%36.12%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,118.004,385.674,670.744,974.345,297.675,642.025,811.28
Payout Ratio29.97%41.97%53.98%65.99%77.99%90.00%92.50%
Projected Dividends (M)1,234.001,840.792,521.253,282.394,131.825,077.825,375.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,671.441,687.281,703.12
Year 2 PV (M)2,078.682,118.272,158.24
Year 3 PV (M)2,457.242,527.782,599.66
Year 4 PV (M)2,808.572,916.583,027.68
Year 5 PV (M)3,134.063,285.443,442.61
PV of Terminal Value (M)54,407.1857,035.0759,763.53
Equity Value (M)66,557.1769,570.4272,694.83
Shares Outstanding (M)282.00282.00282.00
Fair Value$236.02$246.70$257.78
Upside / Downside-64.64%-63.04%-61.38%

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