Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dubai Electricity and Water Authority (PJSC) (DEWA.AE)

Company Dividend Discount ModelIndustry: Diversified UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$2.56 - $5.22$3.58
Multi-Stage$2.30 - $2.51$2.40
Blended Fair Value$2.99
Current Price$2.82
Upside6.12%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.62%28.63%0.120.160.300.040.030.090.020.020.010.01
YoY Growth---21.22%-47.98%656.50%33.33%-66.67%350.00%0.00%100.00%-13.04%15.00%
Dividend Yield--5.02%6.48%12.15%1.39%1.05%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)7,260.25
(-) Cash Dividends Paid (M)6,200.00
(=) Cash Retained (M)1,060.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,452.05907.53544.52
Cash Retained (M)1,060.251,060.251,060.25
(-) Cash Required (M)-1,452.05-907.53-544.52
(=) Excess Retained (M)-391.80152.72515.73
(/) Shares Outstanding (M)50,000.0050,000.0050,000.00
(=) Excess Retained per Share-0.010.000.01
LTM Dividend per Share0.120.120.12
(+) Excess Retained per Share-0.010.000.01
(=) Adjusted Dividend0.120.130.13
WACC / Discount Rate9.37%9.37%9.37%
Growth Rate4.62%5.62%6.62%
Fair Value$2.56$3.58$5.22
Upside / Downside-9.20%27.03%84.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,260.257,668.228,099.128,554.249,034.939,542.639,828.91
Payout Ratio85.40%86.32%87.24%88.16%89.08%90.00%92.50%
Projected Dividends (M)6,200.006,619.007,065.517,541.308,048.258,588.369,091.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.37%9.37%9.37%
Growth Rate4.62%5.62%6.62%
Year 1 PV (M)5,994.896,052.196,109.49
Year 2 PV (M)5,795.915,907.246,019.63
Year 3 PV (M)5,602.905,765.115,930.42
Year 4 PV (M)5,415.745,625.795,841.89
Year 5 PV (M)5,234.265,489.255,754.08
PV of Terminal Value (M)87,051.1091,291.7795,696.12
Equity Value (M)115,094.80120,131.35125,351.63
Shares Outstanding (M)50,000.0050,000.0050,000.00
Fair Value$2.30$2.40$2.51
Upside / Downside-18.37%-14.80%-11.10%

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