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Cabot Corporation (CBT)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$91.36 - $168.47$123.10
Multi-Stage$90.66 - $99.17$94.84
Blended Fair Value$108.97
Current Price$76.05
Upside43.28%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.71%5.54%1.771.721.631.551.481.481.481.481.421.20
YoY Growth--3.23%5.68%4.76%5.00%0.00%0.00%0.00%3.90%18.46%16.07%
Dividend Yield--2.33%1.88%1.95%2.32%2.63%3.29%3.11%3.44%2.31%2.38%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)331.00
(-) Cash Dividends Paid (M)96.00
(=) Cash Retained (M)235.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)66.2041.3824.83
Cash Retained (M)235.00235.00235.00
(-) Cash Required (M)-66.20-41.38-24.83
(=) Excess Retained (M)168.80193.63210.18
(/) Shares Outstanding (M)54.1554.1554.15
(=) Excess Retained per Share3.123.583.88
LTM Dividend per Share1.771.771.77
(+) Excess Retained per Share3.123.583.88
(=) Adjusted Dividend4.895.355.65
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.54%4.54%5.54%
Fair Value$91.36$123.10$168.47
Upside / Downside20.13%61.86%121.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)331.00346.02361.72378.14395.30413.23425.63
Payout Ratio29.00%41.20%53.40%65.60%77.80%90.00%92.50%
Projected Dividends (M)96.00142.57193.17248.06307.54371.91393.71

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.54%4.54%5.54%
Year 1 PV (M)129.45130.70131.95
Year 2 PV (M)159.25162.35165.47
Year 3 PV (M)185.70191.13196.67
Year 4 PV (M)209.04217.23225.66
Year 5 PV (M)229.53240.83252.57
PV of Terminal Value (M)3,996.444,193.204,397.64
Equity Value (M)4,909.425,135.445,369.96
Shares Outstanding (M)54.1554.1554.15
Fair Value$90.66$94.84$99.17
Upside / Downside19.22%24.70%30.40%

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