Definitive Analysis
Definitive Analysis

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Corning Incorporated (0R2X.L)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$15.92 - $24.98$20.08
Multi-Stage$22.12 - $24.17$23.12
Blended Fair Value$21.60
Current Price$82.03
Upside-73.66%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.85%5.25%1.141.151.081.010.910.860.800.760.750.79
YoY Growth---0.30%6.12%7.00%10.67%6.06%8.32%5.22%0.93%-5.01%14.89%
Dividend Yield--2.50%3.51%3.07%2.74%2.10%4.19%2.34%2.71%2.77%3.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,366.00
(-) Cash Dividends Paid (M)993.00
(=) Cash Retained (M)373.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)273.20170.75102.45
Cash Retained (M)373.00373.00373.00
(-) Cash Required (M)-273.20-170.75-102.45
(=) Excess Retained (M)99.80202.25270.55
(/) Shares Outstanding (M)861.50861.50861.50
(=) Excess Retained per Share0.120.230.31
LTM Dividend per Share1.151.151.15
(+) Excess Retained per Share0.120.230.31
(=) Adjusted Dividend1.271.391.47
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.05%2.05%3.05%
Fair Value$15.92$20.08$24.98
Upside / Downside-80.59%-75.52%-69.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,366.001,393.991,422.541,451.691,481.431,511.781,557.13
Payout Ratio72.69%76.16%79.62%83.08%86.54%90.00%92.50%
Projected Dividends (M)993.001,061.591,132.581,206.031,282.011,360.601,440.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.05%2.05%3.05%
Year 1 PV (M)963.53973.06982.60
Year 2 PV (M)933.00951.56970.30
Year 3 PV (M)901.73928.77956.34
Year 4 PV (M)870.00904.95940.95
Year 5 PV (M)838.04880.33924.32
PV of Terminal Value (M)14,548.2815,282.5416,046.14
Equity Value (M)19,054.5719,921.2120,820.64
Shares Outstanding (M)861.50861.50861.50
Fair Value$22.12$23.12$24.17
Upside / Downside-73.04%-71.81%-70.54%

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