Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

NCR Corporation (NCR)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$56.24 - $85.09$69.83
Multi-Stage$110.56 - $121.89$116.11
Blended Fair Value$92.97
Current Price$15.73
Upside491.02%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202220212020201920182017201620152014
DPS0.00%0.00%0.000.110.100.060.000.000.000.000.000.00
YoY Growth---100.00%6.67%66.67%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.47%0.26%0.16%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)943.00
(-) Cash Dividends Paid (M)16.00
(=) Cash Retained (M)927.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)188.60117.8870.73
Cash Retained (M)927.00927.00927.00
(-) Cash Required (M)-188.60-117.88-70.73
(=) Excess Retained (M)738.40809.13856.28
(/) Shares Outstanding (M)144.70144.70144.70
(=) Excess Retained per Share5.105.595.92
LTM Dividend per Share0.110.110.11
(+) Excess Retained per Share5.105.595.92
(=) Adjusted Dividend5.215.706.03
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$56.24$69.83$85.09
Upside / Downside257.54%343.91%440.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)943.00933.57924.23914.99905.84896.78923.69
Payout Ratio1.70%19.36%37.02%54.68%72.34%90.00%92.50%
Projected Dividends (M)16.00180.71342.13500.31655.28807.11854.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)167.05168.76170.46
Year 2 PV (M)292.36298.36304.42
Year 3 PV (M)395.21407.43419.90
Year 4 PV (M)478.50498.33518.77
Year 5 PV (M)544.81573.18602.72
PV of Terminal Value (M)14,119.7214,854.9715,620.53
Equity Value (M)15,997.6616,801.0317,636.81
Shares Outstanding (M)144.70144.70144.70
Fair Value$110.56$116.11$121.89
Upside / Downside602.84%638.14%674.86%

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