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MicroStrategy Incorporated (0A7O.L)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$205.48 - $295.73$249.52
Multi-Stage$319.62 - $351.81$335.40
Blended Fair Value$292.46
Current Price$320.01
Upside-8.61%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%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)7,917.69
(-) Cash Dividends Paid (M)58.14
(=) Cash Retained (M)7,859.55
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,583.54989.71593.83
Cash Retained (M)7,859.557,859.557,859.55
(-) Cash Required (M)-1,583.54-989.71-593.83
(=) Excess Retained (M)6,276.016,869.847,265.72
(/) Shares Outstanding (M)272.21272.21272.21
(=) Excess Retained per Share23.0625.2426.69
LTM Dividend per Share0.210.210.21
(+) Excess Retained per Share23.0625.2426.69
(=) Adjusted Dividend23.2725.4526.91
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$205.48$249.52$295.73
Upside / Downside-35.79%-22.03%-7.59%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,917.697,838.517,760.137,682.537,605.707,529.647,755.53
Payout Ratio0.73%18.59%36.44%54.29%72.15%90.00%92.50%
Projected Dividends (M)58.141,456.982,827.844,171.135,487.286,776.687,173.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1,321.991,335.481,348.97
Year 2 PV (M)2,328.112,375.862,424.10
Year 3 PV (M)3,115.853,212.213,310.53
Year 4 PV (M)3,719.233,873.384,032.26
Year 5 PV (M)4,167.614,384.634,610.60
PV of Terminal Value (M)72,349.6576,117.0780,039.82
Equity Value (M)87,002.4491,298.6295,766.28
Shares Outstanding (M)272.21272.21272.21
Fair Value$319.62$335.40$351.81
Upside / Downside-0.12%4.81%9.94%

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