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Telekom Austria AG (TA1.DE)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$24.91 - $78.39$40.02
Multi-Stage$25.36 - $27.75$26.53
Blended Fair Value$33.28
Current Price$9.65
Upside244.86%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.43%15.65%0.360.320.280.250.230.210.250.250.100.10
YoY Growth--12.76%14.29%12.00%8.70%9.52%-16.66%0.27%148.19%0.18%19.93%
Dividend Yield--4.18%4.13%4.88%4.33%4.14%4.01%4.73%3.93%1.92%2.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)639.00
(-) Cash Dividends Paid (M)505.07
(=) Cash Retained (M)133.93
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)127.8079.8847.93
Cash Retained (M)133.93133.93133.93
(-) Cash Required (M)-127.80-79.88-47.93
(=) Excess Retained (M)6.1354.0686.01
(/) Shares Outstanding (M)664.08664.08664.08
(=) Excess Retained per Share0.010.080.13
LTM Dividend per Share0.760.760.76
(+) Excess Retained per Share0.010.080.13
(=) Adjusted Dividend0.770.840.89
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate3.45%4.45%5.45%
Fair Value$24.91$40.02$78.39
Upside / Downside158.10%314.75%712.38%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)639.00667.42697.10728.11760.49794.31818.14
Payout Ratio79.04%81.23%83.42%85.62%87.81%90.00%92.50%
Projected Dividends (M)505.07542.16581.55623.38667.77714.88756.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate3.45%4.45%5.45%
Year 1 PV (M)503.51508.38513.25
Year 2 PV (M)501.60511.34521.18
Year 3 PV (M)499.34513.96528.87
Year 4 PV (M)496.77516.26536.32
Year 5 PV (M)493.91518.25543.54
PV of Terminal Value (M)14,345.9015,052.8315,787.35
Equity Value (M)16,841.0417,621.0318,430.51
Shares Outstanding (M)664.08664.08664.08
Fair Value$25.36$26.53$27.75
Upside / Downside162.80%174.97%187.60%

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