Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dubai Electricity and Water Authority (PJSC) (DEWA.AE)

Company Dividend Discount ModelIndustry: Diversified UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$1.97 - $3.43$2.59
Multi-Stage$1.87 - $2.03$1.95
Blended Fair Value$2.27
Current Price$2.82
Upside-19.47%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.62%28.63%0.120.160.300.040.030.090.020.020.010.01
YoY Growth---21.22%-47.98%656.50%33.33%-66.67%350.00%0.00%100.00%-13.04%15.00%
Dividend Yield--5.02%6.48%12.15%1.39%1.05%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)7,260.25
(-) Cash Dividends Paid (M)6,200.00
(=) Cash Retained (M)1,060.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,452.05907.53544.52
Cash Retained (M)1,060.251,060.251,060.25
(-) Cash Required (M)-1,452.05-907.53-544.52
(=) Excess Retained (M)-391.80152.72515.73
(/) Shares Outstanding (M)50,000.0050,000.0050,000.00
(=) Excess Retained per Share-0.010.000.01
LTM Dividend per Share0.120.120.12
(+) Excess Retained per Share-0.010.000.01
(=) Adjusted Dividend0.120.130.13
WACC / Discount Rate10.80%10.80%10.80%
Growth Rate4.62%5.62%6.62%
Fair Value$1.97$2.59$3.43
Upside / Downside-30.27%-8.13%21.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,260.257,668.228,099.128,554.249,034.939,542.639,828.91
Payout Ratio85.40%86.32%87.24%88.16%89.08%90.00%92.50%
Projected Dividends (M)6,200.006,619.007,065.517,541.308,048.258,588.369,091.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.80%10.80%10.80%
Growth Rate4.62%5.62%6.62%
Year 1 PV (M)5,917.305,973.866,030.42
Year 2 PV (M)5,646.855,755.325,864.82
Year 3 PV (M)5,388.165,544.155,703.13
Year 4 PV (M)5,140.775,340.155,545.29
Year 5 PV (M)4,904.205,143.115,391.24
PV of Terminal Value (M)66,565.6969,808.4273,176.31
Equity Value (M)93,562.9897,565.02101,711.20
Shares Outstanding (M)50,000.0050,000.0050,000.00
Fair Value$1.87$1.95$2.03
Upside / Downside-33.64%-30.80%-27.86%

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