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Tortoise Energy Infrastructure Corporation (TYG)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$111.18 - $160.07$135.04
Multi-Stage$184.25 - $202.13$193.02
Blended Fair Value$164.03
Current Price$40.50
Upside305.00%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-25.37%-9.91%2.592.572.701.422.3311.1910.649.8410.0110.04
YoY Growth--0.94%-5.00%90.78%-39.35%-79.14%5.19%8.12%-1.73%-0.28%36.55%
Dividend Yield--5.63%9.13%8.05%5.19%12.19%16.64%11.78%9.51%8.18%9.45%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)194.57
(-) Cash Dividends Paid (M)85.51
(=) Cash Retained (M)109.06
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)38.9124.3214.59
Cash Retained (M)109.06109.06109.06
(-) Cash Required (M)-38.91-24.32-14.59
(=) Excess Retained (M)70.1484.7494.46
(/) Shares Outstanding (M)12.3812.3812.38
(=) Excess Retained per Share5.666.847.63
LTM Dividend per Share6.916.916.91
(+) Excess Retained per Share5.666.847.63
(=) Adjusted Dividend12.5713.7514.53
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$111.18$135.04$160.07
Upside / Downside174.53%233.42%295.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)194.57192.63190.70188.79186.90185.04190.59
Payout Ratio43.95%53.16%62.37%71.58%80.79%90.00%92.50%
Projected Dividends (M)85.51102.40118.94135.14151.00166.53176.29

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)92.9393.8894.82
Year 2 PV (M)97.9599.96101.99
Year 3 PV (M)101.00104.12107.31
Year 4 PV (M)102.41106.66111.03
Year 5 PV (M)102.50107.84113.40
PV of Terminal Value (M)1,784.671,877.601,974.37
Equity Value (M)2,281.462,390.062,502.92
Shares Outstanding (M)12.3812.3812.38
Fair Value$184.25$193.02$202.13
Upside / Downside354.93%376.58%399.09%

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