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PVH Corp. (PVH)

Company Dividend Discount ModelIndustry: Apparel - ManufacturersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$37.18 - $51.35$44.31
Multi-Stage$64.90 - $71.59$68.18
Blended Fair Value$56.25
Current Price$76.68
Upside-26.65%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-5.31%-3.67%0.170.190.200.050.050.220.230.230.240.25
YoY Growth---8.51%-6.93%274.07%0.00%-76.11%-2.59%-2.52%-2.46%-2.40%0.00%
Dividend Yield--0.24%0.16%0.24%0.07%0.05%0.50%0.18%0.15%0.24%0.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)340.80
(-) Cash Dividends Paid (M)8.20
(=) Cash Retained (M)332.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)68.1642.6025.56
Cash Retained (M)332.60332.60332.60
(-) Cash Required (M)-68.16-42.60-25.56
(=) Excess Retained (M)264.44290.00307.04
(/) Shares Outstanding (M)50.7550.7550.75
(=) Excess Retained per Share5.215.716.05
LTM Dividend per Share0.160.160.16
(+) Excess Retained per Share5.215.716.05
(=) Adjusted Dividend5.375.886.21
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-4.67%-3.67%-2.67%
Fair Value$37.18$44.31$51.35
Upside / Downside-51.51%-42.21%-33.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)340.80328.28316.21304.59293.40282.62291.10
Payout Ratio2.41%19.92%37.44%54.96%72.48%90.00%92.50%
Projected Dividends (M)8.2065.41118.40167.41212.66254.36269.27

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-4.67%-3.67%-2.67%
Year 1 PV (M)59.3359.9560.58
Year 2 PV (M)97.4299.48101.55
Year 3 PV (M)124.95128.93132.98
Year 4 PV (M)143.98150.11156.45
Year 5 PV (M)156.21164.57173.30
PV of Terminal Value (M)2,711.762,857.013,008.42
Equity Value (M)3,293.653,460.063,633.28
Shares Outstanding (M)50.7550.7550.75
Fair Value$64.90$68.18$71.59
Upside / Downside-15.36%-11.09%-6.64%

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