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GE Vernova Inc. (GEV)

Company Dividend Discount ModelIndustry: Renewable UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$43.46 - $62.54$52.77
Multi-Stage$68.74 - $75.59$72.10
Blended Fair Value$62.43
Current Price$614.90
Upside-89.85%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,704.00
(-) Cash Dividends Paid (M)207.00
(=) Cash Retained (M)1,497.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)340.80213.00127.80
Cash Retained (M)1,497.001,497.001,497.00
(-) Cash Required (M)-340.80-213.00-127.80
(=) Excess Retained (M)1,156.201,284.001,369.20
(/) Shares Outstanding (M)277.00277.00277.00
(=) Excess Retained per Share4.174.644.94
LTM Dividend per Share0.750.750.75
(+) Excess Retained per Share4.174.644.94
(=) Adjusted Dividend4.925.385.69
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$43.46$52.77$62.54
Upside / Downside-92.93%-91.42%-89.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,704.001,686.961,670.091,653.391,636.861,620.491,669.10
Payout Ratio12.15%27.72%43.29%58.86%74.43%90.00%92.50%
Projected Dividends (M)207.00467.60722.96973.171,218.301,458.441,543.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)424.27428.60432.93
Year 2 PV (M)595.20607.41619.74
Year 3 PV (M)726.96749.44772.38
Year 4 PV (M)825.76859.98895.26
Year 5 PV (M)896.93943.64992.27
PV of Terminal Value (M)15,570.6816,381.4817,225.71
Equity Value (M)19,039.8019,970.5520,938.29
Shares Outstanding (M)277.00277.00277.00
Fair Value$68.74$72.10$75.59
Upside / Downside-88.82%-88.28%-87.71%

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