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First Horizon Corporation (FHN)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$40.15 - $107.18$61.51
Multi-Stage$27.76 - $30.31$29.01
Blended Fair Value$45.26
Current Price$22.61
Upside100.18%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.19%21.50%0.640.640.620.640.430.330.270.150.120.10
YoY Growth---0.90%3.40%-2.70%50.00%29.82%23.02%73.96%25.83%17.72%13.89%
Dividend Yield--3.29%4.30%3.50%2.72%2.52%4.08%1.85%0.82%0.66%0.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)886.00
(-) Cash Dividends Paid (M)305.00
(=) Cash Retained (M)581.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)177.20110.7566.45
Cash Retained (M)581.00581.00581.00
(-) Cash Required (M)-177.20-110.75-66.45
(=) Excess Retained (M)403.80470.25514.55
(/) Shares Outstanding (M)520.25520.25520.25
(=) Excess Retained per Share0.780.900.99
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.780.900.99
(=) Adjusted Dividend1.361.491.58
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$40.15$61.51$107.18
Upside / Downside77.57%172.06%374.04%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)886.00943.591,004.921,070.241,139.811,213.901,250.31
Payout Ratio34.42%45.54%56.65%67.77%78.88%90.00%92.50%
Projected Dividends (M)305.00429.71569.34725.30899.141,092.511,156.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)390.24393.94397.64
Year 2 PV (M)469.55478.50487.52
Year 3 PV (M)543.24558.83574.72
Year 4 PV (M)611.58635.10659.30
Year 5 PV (M)674.86707.45741.30
PV of Terminal Value (M)11,750.2112,317.7512,907.01
Equity Value (M)14,439.6915,091.5815,767.49
Shares Outstanding (M)520.25520.25520.25
Fair Value$27.76$29.01$30.31
Upside / Downside22.76%28.30%34.04%

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