Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Entergy Louisiana, LLC COLLATERAL TR MT (ELC)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$87.74 - $215.59$130.97
Multi-Stage$107.33 - $117.65$112.39
Blended Fair Value$121.68
Current Price$93.19
Upside30.57%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.65%5.11%2.222.071.901.751.691.611.461.421.381.35
YoY Growth--6.91%9.09%8.59%3.58%5.17%9.86%2.99%2.79%2.16%0.47%
Dividend Yield--2.59%3.96%3.53%3.00%3.40%3.42%3.10%3.61%3.64%3.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,817.59
(-) Cash Dividends Paid (M)1,042.34
(=) Cash Retained (M)775.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)363.52227.20136.32
Cash Retained (M)775.25775.25775.25
(-) Cash Required (M)-363.52-227.20-136.32
(=) Excess Retained (M)411.73548.05638.93
(/) Shares Outstanding (M)442.51442.51442.51
(=) Excess Retained per Share0.931.241.44
LTM Dividend per Share2.362.362.36
(+) Excess Retained per Share0.931.241.44
(=) Adjusted Dividend3.293.593.80
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate2.65%3.65%4.65%
Fair Value$87.74$130.97$215.59
Upside / Downside-5.85%40.54%131.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,817.591,883.891,952.612,023.842,097.662,174.182,239.40
Payout Ratio57.35%63.88%70.41%76.94%83.47%90.00%92.50%
Projected Dividends (M)1,042.341,203.391,374.801,557.121,750.911,956.762,071.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate2.65%3.65%4.65%
Year 1 PV (M)1,119.121,130.031,140.93
Year 2 PV (M)1,189.011,212.291,235.79
Year 3 PV (M)1,252.391,289.351,327.03
Year 4 PV (M)1,309.641,361.431,414.73
Year 5 PV (M)1,361.131,428.731,499.00
PV of Terminal Value (M)41,262.1343,311.5645,441.63
Equity Value (M)47,493.4149,733.3852,059.11
Shares Outstanding (M)442.51442.51442.51
Fair Value$107.33$112.39$117.65
Upside / Downside15.17%20.60%26.24%

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