Definitive Analysis
Definitive Analysis

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freenet AG (FNTN.DE)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$20.33 - $31.11$25.37
Multi-Stage$46.33 - $50.89$48.57
Blended Fair Value$36.97
Current Price$27.22
Upside35.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.08%1.26%1.771.681.571.720.041.781.781.731.671.62
YoY Growth--5.36%7.02%-8.41%3,879.18%-97.58%0.00%3.12%3.23%3.33%3.45%
Dividend Yield--5.03%6.47%6.57%7.07%0.21%11.08%9.04%6.99%5.49%6.16%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)269.10
(-) Cash Dividends Paid (M)234.10
(=) Cash Retained (M)35.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.8233.6420.18
Cash Retained (M)35.0035.0035.00
(-) Cash Required (M)-53.82-33.64-20.18
(=) Excess Retained (M)-18.821.3614.82
(/) Shares Outstanding (M)118.61118.61118.61
(=) Excess Retained per Share-0.160.010.12
LTM Dividend per Share1.971.971.97
(+) Excess Retained per Share-0.160.010.12
(=) Adjusted Dividend1.811.992.10
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-2.08%-1.08%-0.08%
Fair Value$20.33$25.37$31.11
Upside / Downside-25.30%-6.79%14.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)269.10266.20263.33260.49257.69254.91262.56
Payout Ratio86.99%87.59%88.20%88.80%89.40%90.00%92.50%
Projected Dividends (M)234.10233.18232.25231.31230.37229.42242.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-2.08%-1.08%-0.08%
Year 1 PV (M)216.40218.61220.82
Year 2 PV (M)200.03204.14208.29
Year 3 PV (M)184.89190.62196.46
Year 4 PV (M)170.89177.98185.29
Year 5 PV (M)157.94166.18174.75
PV of Terminal Value (M)4,565.064,802.975,050.69
Equity Value (M)5,495.235,760.496,036.29
Shares Outstanding (M)118.61118.61118.61
Fair Value$46.33$48.57$50.89
Upside / Downside70.20%78.42%86.96%

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