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DRA Global Limited (DRA.AX)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$3.43 - $5.31$4.30
Multi-Stage$7.92 - $8.72$8.31
Blended Fair Value$6.31
Current Price$1.87
Upside237.23%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017
DPS3.30%0.00%0.040.000.000.000.000.040.180.000.000.00
YoY Growth--0.00%0.00%0.00%-100.00%-99.95%-79.06%0.00%0.00%0.00%0.00%
Dividend Yield--2.80%0.00%0.00%0.00%0.00%0.95%4.54%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)21.16
(-) Cash Dividends Paid (M)12.41
(=) Cash Retained (M)8.75
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.232.641.59
Cash Retained (M)8.758.758.75
(-) Cash Required (M)-4.23-2.64-1.59
(=) Excess Retained (M)4.526.107.16
(/) Shares Outstanding (M)57.6057.6057.60
(=) Excess Retained per Share0.080.110.12
LTM Dividend per Share0.220.220.22
(+) Excess Retained per Share0.080.110.12
(=) Adjusted Dividend0.290.320.34
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.43$4.30$5.31
Upside / Downside83.30%129.90%183.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)21.1620.9520.7420.5320.3220.1220.72
Payout Ratio58.65%64.92%71.19%77.46%83.73%90.00%92.50%
Projected Dividends (M)12.4113.6014.7615.9017.0218.1119.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)12.6512.7812.91
Year 2 PV (M)12.7813.0413.30
Year 3 PV (M)12.8013.2013.60
Year 4 PV (M)12.7513.2813.82
Year 5 PV (M)12.6213.2813.96
PV of Terminal Value (M)392.81413.26434.56
Equity Value (M)456.41478.84502.16
Shares Outstanding (M)57.6057.6057.60
Fair Value$7.92$8.31$8.72
Upside / Downside323.74%344.56%366.22%

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