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Rural Funds Group (RFF.AX)

Company Dividend Discount ModelIndustry: REIT - SpecialtySector: Real Estate

Valuation Snapshot

Stable Growth$51.83 - $230.10$121.96
Multi-Stage$26.28 - $28.77$27.50
Blended Fair Value$74.73
Current Price$1.76
Upside4,145.96%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS4.84%16.05%0.120.120.120.110.100.090.080.070.050.03
YoY Growth--0.35%1.25%4.19%14.18%4.80%10.82%28.19%35.75%43.00%26.85%
Dividend Yield--6.67%5.79%6.53%4.42%3.68%4.85%3.65%3.09%2.61%2.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)448.87
(-) Cash Dividends Paid (M)68.16
(=) Cash Retained (M)380.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)89.7756.1133.67
Cash Retained (M)380.71380.71380.71
(-) Cash Required (M)-89.77-56.11-33.67
(=) Excess Retained (M)290.93324.60347.04
(/) Shares Outstanding (M)387.96387.96387.96
(=) Excess Retained per Share0.750.840.89
LTM Dividend per Share0.180.180.18
(+) Excess Retained per Share0.750.840.89
(=) Adjusted Dividend0.931.011.07
WACC / Discount Rate7.38%7.38%7.38%
Growth Rate5.50%6.50%7.50%
Fair Value$51.83$121.96$230.10
Upside / Downside2,844.85%6,829.29%12,973.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)448.87478.05509.12542.21577.46614.99633.44
Payout Ratio15.19%30.15%45.11%60.07%75.04%90.00%92.50%
Projected Dividends (M)68.16144.12229.67325.73433.31553.49585.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.38%7.38%7.38%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)132.95134.21135.47
Year 2 PV (M)195.45199.17202.93
Year 3 PV (M)255.71263.05270.53
Year 4 PV (M)313.80325.86338.28
Year 5 PV (M)369.76387.62406.17
PV of Terminal Value (M)8,928.639,359.889,807.64
Equity Value (M)10,196.3010,669.8011,161.02
Shares Outstanding (M)387.96387.96387.96
Fair Value$26.28$27.50$28.77
Upside / Downside1,393.27%1,462.62%1,534.56%

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