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Village Super Market, Inc. (VLGEA)

Company Dividend Discount ModelIndustry: Grocery StoresSector: Consumer Defensive

Valuation Snapshot

Stable Growth$43.38 - $70.87$55.66
Multi-Stage$52.06 - $57.05$54.51
Blended Fair Value$55.08
Current Price$31.37
Upside75.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.52%0.57%0.920.920.910.900.900.890.890.890.880.87
YoY Growth---0.25%1.12%1.17%-0.07%0.66%0.58%0.09%0.70%1.22%0.45%
Dividend Yield--2.55%3.08%3.78%4.03%4.03%3.82%3.45%3.50%3.61%2.90%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)55.58
(-) Cash Dividends Paid (M)11.35
(=) Cash Retained (M)44.23
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.126.954.17
Cash Retained (M)44.2344.2344.23
(-) Cash Required (M)-11.12-6.95-4.17
(=) Excess Retained (M)33.1237.2840.06
(/) Shares Outstanding (M)14.5314.5314.53
(=) Excess Retained per Share2.282.572.76
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share2.282.572.76
(=) Adjusted Dividend3.063.353.54
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.89%2.89%3.89%
Fair Value$43.38$55.66$70.87
Upside / Downside38.30%77.44%125.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)55.5857.1958.8460.5562.3064.1066.02
Payout Ratio20.42%34.33%48.25%62.17%76.08%90.00%92.50%
Projected Dividends (M)11.3519.6328.3937.6447.4057.6961.07

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.89%2.89%3.89%
Year 1 PV (M)17.8218.0018.17
Year 2 PV (M)23.4023.8624.33
Year 3 PV (M)28.1629.0029.85
Year 4 PV (M)32.2033.4834.80
Year 5 PV (M)35.5837.3639.21
PV of Terminal Value (M)619.46650.46682.69
Equity Value (M)756.62792.16829.05
Shares Outstanding (M)14.5314.5314.53
Fair Value$52.06$54.51$57.05
Upside / Downside65.96%73.75%81.85%

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