Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

1&1 AG (1U1.DE)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$7.24 - $10.89$8.97
Multi-Stage$13.92 - $15.34$14.62
Blended Fair Value$11.79
Current Price$18.64
Upside-36.74%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-19.46%0.050.050.050.050.050.051.600.000.540.51
YoY Growth--0.00%0.00%0.02%0.00%0.00%-96.88%0.00%-100.00%5.99%17.74%
Dividend Yield--0.33%0.32%0.49%0.25%0.21%0.26%4.84%0.00%1.14%1.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)150.97
(-) Cash Dividends Paid (M)8.82
(=) Cash Retained (M)142.15
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)30.1918.8711.32
Cash Retained (M)142.15142.15142.15
(-) Cash Required (M)-30.19-18.87-11.32
(=) Excess Retained (M)111.96123.28130.83
(/) Shares Outstanding (M)176.71176.71176.71
(=) Excess Retained per Share0.630.700.74
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.630.700.74
(=) Adjusted Dividend0.680.750.79
WACC / Discount Rate7.26%7.26%7.26%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.24$8.97$10.89
Upside / Downside-61.17%-51.90%-41.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)150.97149.46147.97146.50145.04143.60147.91
Payout Ratio5.84%22.67%39.50%56.34%73.17%90.00%92.50%
Projected Dividends (M)8.8233.8858.4582.53106.12129.24136.81

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.26%7.26%7.26%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)31.2731.5931.91
Year 2 PV (M)49.7950.8151.84
Year 3 PV (M)64.8866.8868.93
Year 4 PV (M)76.9980.1883.47
Year 5 PV (M)86.5391.0495.73
PV of Terminal Value (M)2,150.642,262.632,379.23
Equity Value (M)2,460.102,583.132,711.11
Shares Outstanding (M)176.71176.71176.71
Fair Value$13.92$14.62$15.34
Upside / Downside-25.31%-21.58%-17.69%

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