Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MicroStrategy Incorporated (0A7O.L)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$262.01 - $401.36$327.07
Multi-Stage$547.15 - $603.44$574.74
Blended Fair Value$450.91
Current Price$320.01
Upside40.90%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%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)7,917.69
(-) Cash Dividends Paid (M)58.14
(=) Cash Retained (M)7,859.55
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,583.54989.71593.83
Cash Retained (M)7,859.557,859.557,859.55
(-) Cash Required (M)-1,583.54-989.71-593.83
(=) Excess Retained (M)6,276.016,869.847,265.72
(/) Shares Outstanding (M)272.21272.21272.21
(=) Excess Retained per Share23.0625.2426.69
LTM Dividend per Share0.210.210.21
(+) Excess Retained per Share23.0625.2426.69
(=) Adjusted Dividend23.2725.4526.91
WACC / Discount Rate6.70%6.70%6.70%
Growth Rate-2.00%-1.00%0.00%
Fair Value$262.01$327.07$401.36
Upside / Downside-18.13%2.21%25.42%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,917.697,838.517,760.137,682.537,605.707,529.647,755.53
Payout Ratio0.73%18.59%36.44%54.29%72.15%90.00%92.50%
Projected Dividends (M)58.141,456.982,827.844,171.135,487.286,776.687,173.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.70%6.70%6.70%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)1,351.651,365.451,379.24
Year 2 PV (M)2,433.762,483.682,534.11
Year 3 PV (M)3,330.343,433.343,538.43
Year 4 PV (M)4,064.474,232.924,406.56
Year 5 PV (M)4,656.674,899.165,151.64
PV of Terminal Value (M)133,102.42140,033.37147,250.09
Equity Value (M)148,939.32156,447.91164,260.07
Shares Outstanding (M)272.21272.21272.21
Fair Value$547.15$574.74$603.44
Upside / Downside70.98%79.60%88.57%

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