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Helloworld Travel Limited (HLO.AX)

Company Dividend Discount ModelIndustry: Travel ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$2.40 - $3.41$2.90
Multi-Stage$6.34 - $6.98$6.65
Blended Fair Value$4.78
Current Price$1.43
Upside233.92%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-3.08%0.00%0.140.110.120.000.000.170.150.110.060.00
YoY Growth--28.90%-5.37%0.00%0.00%-100.00%13.65%30.39%88.59%0.00%0.00%
Dividend Yield--9.93%4.92%4.29%0.00%0.00%7.38%2.97%2.37%1.49%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)59.31
(-) Cash Dividends Paid (M)40.03
(=) Cash Retained (M)19.28
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.867.414.45
Cash Retained (M)19.2819.2819.28
(-) Cash Required (M)-11.86-7.41-4.45
(=) Excess Retained (M)7.4111.8614.83
(/) Shares Outstanding (M)158.82158.82158.82
(=) Excess Retained per Share0.050.070.09
LTM Dividend per Share0.250.250.25
(+) Excess Retained per Share0.050.070.09
(=) Adjusted Dividend0.300.330.35
WACC / Discount Rate6.75%6.75%6.75%
Growth Rate-5.08%-4.08%-3.08%
Fair Value$2.40$2.90$3.41
Upside / Downside67.70%102.47%138.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)59.3156.8954.5852.3550.2248.1749.62
Payout Ratio67.50%72.00%76.50%81.00%85.50%90.00%92.50%
Projected Dividends (M)40.0340.9641.7542.4042.9443.3545.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.75%6.75%6.75%
Growth Rate-5.08%-4.08%-3.08%
Year 1 PV (M)37.9738.3738.77
Year 2 PV (M)35.8836.6437.40
Year 3 PV (M)33.7834.8635.96
Year 4 PV (M)31.7133.0634.46
Year 5 PV (M)29.6831.2732.94
PV of Terminal Value (M)837.62882.68929.65
Equity Value (M)1,006.631,056.881,109.19
Shares Outstanding (M)158.82158.82158.82
Fair Value$6.34$6.65$6.98
Upside / Downside343.24%365.37%388.40%

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