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L'Oréal S.A. (LOR.DE)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$2,148.31 - $4,674.80$4,380.98
Multi-Stage$715.19 - $782.28$748.12
Blended Fair Value$2,564.55
Current Price$363.10
Upside606.29%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.23%8.56%6.746.395.024.394.094.143.853.493.422.86
YoY Growth--5.53%27.35%14.36%7.37%-1.37%7.75%10.19%2.06%19.42%-3.43%
Dividend Yield--1.97%1.42%1.50%1.05%1.31%1.57%1.91%1.89%1.97%1.84%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)12,601.70
(-) Cash Dividends Paid (M)7,483.00
(=) Cash Retained (M)5,118.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2,520.341,575.21945.13
Cash Retained (M)5,118.705,118.705,118.70
(-) Cash Required (M)-2,520.34-1,575.21-945.13
(=) Excess Retained (M)2,598.363,543.494,173.57
(/) Shares Outstanding (M)536.10536.10536.10
(=) Excess Retained per Share4.856.617.79
LTM Dividend per Share13.9613.9613.96
(+) Excess Retained per Share4.856.617.79
(=) Adjusted Dividend18.8020.5721.74
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate5.50%6.50%7.50%
Fair Value$2,148.31$4,380.98$4,674.80
Upside / Downside491.66%1,106.55%1,187.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)12,601.7013,420.8114,293.1615,222.2216,211.6617,265.4217,783.38
Payout Ratio59.38%65.50%71.63%77.75%83.88%90.00%92.50%
Projected Dividends (M)7,483.008,791.2610,237.9811,835.6313,597.7215,538.8816,449.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)8,183.088,260.648,338.21
Year 2 PV (M)8,870.449,039.409,209.95
Year 3 PV (M)9,545.269,819.2710,098.47
Year 4 PV (M)10,207.7010,600.2611,004.03
Year 5 PV (M)10,857.9211,382.3611,926.87
PV of Terminal Value (M)335,749.27351,966.08368,803.55
Equity Value (M)383,413.66401,068.01419,381.08
Shares Outstanding (M)536.10536.10536.10
Fair Value$715.19$748.12$782.28
Upside / Downside96.97%106.04%115.45%

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