Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Veralto Corporation (VLTO)

Company Dividend Discount ModelIndustry: Industrial - Pollution & Treatment ControlsSector: Industrials

Valuation Snapshot

Stable Growth$35.95 - $56.66$45.44
Multi-Stage$87.74 - $96.79$92.17
Blended Fair Value$68.81
Current Price$107.14
Upside-35.78%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020
DPS0.00%0.00%0.360.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.40%0.00%0.00%0.00%0.00%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)913.00
(-) Cash Dividends Paid (M)104.00
(=) Cash Retained (M)809.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)182.60114.1368.48
Cash Retained (M)809.00809.00809.00
(-) Cash Required (M)-182.60-114.13-68.48
(=) Excess Retained (M)626.40694.88740.53
(/) Shares Outstanding (M)250.23250.23250.23
(=) Excess Retained per Share2.502.782.96
LTM Dividend per Share0.420.420.42
(+) Excess Retained per Share2.502.782.96
(=) Adjusted Dividend2.923.193.38
WACC / Discount Rate5.96%5.96%5.96%
Growth Rate-2.00%-1.00%0.00%
Fair Value$35.95$45.44$56.66
Upside / Downside-66.44%-57.59%-47.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)913.00903.87894.83885.88877.02868.25894.30
Payout Ratio11.39%27.11%42.83%58.56%74.28%90.00%92.50%
Projected Dividends (M)104.00245.06383.30518.74651.44781.43827.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.96%5.96%5.96%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)228.95231.29233.62
Year 2 PV (M)334.55341.42348.35
Year 3 PV (M)423.00436.09449.43
Year 4 PV (M)496.28516.85538.05
Year 5 PV (M)556.18585.14615.29
PV of Terminal Value (M)19,916.5120,953.6122,033.46
Equity Value (M)21,955.4823,064.3824,218.22
Shares Outstanding (M)250.23250.23250.23
Fair Value$87.74$92.17$96.79
Upside / Downside-18.10%-13.97%-9.66%

High-Yield Dividend Screener

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