Definitive Analysis
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Carrier Global Corporation (CARR)

Company Dividend Discount ModelIndustry: ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$32.09 - $46.18$38.97
Multi-Stage$51.23 - $56.31$53.72
Blended Fair Value$46.34
Current Price$59.70
Upside-22.38%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS0.00%0.00%0.760.710.580.480.160.000.000.000.000.00
YoY Growth--8.06%21.81%22.06%202.17%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.21%1.23%1.27%1.04%0.37%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)3,982.00
(-) Cash Dividends Paid (M)739.00
(=) Cash Retained (M)3,243.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)796.40497.75298.65
Cash Retained (M)3,243.003,243.003,243.00
(-) Cash Required (M)-796.40-497.75-298.65
(=) Excess Retained (M)2,446.602,745.252,944.35
(/) Shares Outstanding (M)876.65876.65876.65
(=) Excess Retained per Share2.793.133.36
LTM Dividend per Share0.840.840.84
(+) Excess Retained per Share2.793.133.36
(=) Adjusted Dividend3.633.974.20
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$32.09$38.97$46.18
Upside / Downside-46.25%-34.73%-22.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,982.003,942.183,902.763,863.733,825.093,786.843,900.45
Payout Ratio18.56%32.85%47.14%61.42%75.71%90.00%92.50%
Projected Dividends (M)739.001,294.881,839.572,373.232,896.043,408.163,607.91

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1,174.911,186.901,198.89
Year 2 PV (M)1,514.481,545.551,576.93
Year 3 PV (M)1,772.811,827.641,883.58
Year 4 PV (M)1,962.912,044.272,128.12
Year 5 PV (M)2,095.992,205.142,318.78
PV of Terminal Value (M)36,386.4138,281.1440,253.98
Equity Value (M)44,907.5247,090.6349,360.29
Shares Outstanding (M)876.65876.65876.65
Fair Value$51.23$53.72$56.31
Upside / Downside-14.19%-10.02%-5.69%

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