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Masco Corporation (0JZ1.L)

Company Dividend Discount ModelIndustry: Construction MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$39.57 - $62.31$49.98
Multi-Stage$51.74 - $56.68$54.16
Blended Fair Value$52.07
Current Price$70.39
Upside-26.02%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.02%8.06%1.201.211.210.990.680.680.630.610.600.59
YoY Growth---1.17%-0.39%22.27%45.52%0.69%7.46%3.88%0.78%1.59%7.69%
Dividend Yield--1.72%1.56%2.44%1.95%1.14%1.96%1.60%1.50%1.77%1.89%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)827.00
(-) Cash Dividends Paid (M)260.00
(=) Cash Retained (M)567.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)165.40103.3862.03
Cash Retained (M)567.00567.00567.00
(-) Cash Required (M)-165.40-103.38-62.03
(=) Excess Retained (M)401.60463.63504.98
(/) Shares Outstanding (M)212.50212.50212.50
(=) Excess Retained per Share1.892.182.38
LTM Dividend per Share1.221.221.22
(+) Excess Retained per Share1.892.182.38
(=) Adjusted Dividend3.113.413.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.14%2.14%3.14%
Fair Value$39.57$49.98$62.31
Upside / Downside-43.79%-28.99%-11.48%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)827.00844.69862.76881.22900.07919.33946.91
Payout Ratio31.44%43.15%54.86%66.58%78.29%90.00%92.50%
Projected Dividends (M)260.00364.49473.34586.68704.65827.40875.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.14%2.14%3.14%
Year 1 PV (M)330.83334.10337.37
Year 2 PV (M)389.94397.69405.51
Year 3 PV (M)438.66451.80465.20
Year 4 PV (M)478.20497.40517.17
Year 5 PV (M)509.64535.34562.07
PV of Terminal Value (M)8,847.389,293.509,757.43
Equity Value (M)10,994.6511,509.8212,044.75
Shares Outstanding (M)212.50212.50212.50
Fair Value$51.74$54.16$56.68
Upside / Downside-26.50%-23.05%-19.48%

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