Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Ralliant Corp. (RAL)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$11.81 - $16.74$14.24
Multi-Stage$17.20 - $18.91$18.04
Blended Fair Value$16.14
Current Price$43.15
Upside-62.59%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022
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)203.30
(-) Cash Dividends Paid (M)5.60
(=) Cash Retained (M)197.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)40.6625.4115.25
Cash Retained (M)197.70197.70197.70
(-) Cash Required (M)-40.66-25.41-15.25
(=) Excess Retained (M)157.04172.29182.45
(/) Shares Outstanding (M)113.02113.02113.02
(=) Excess Retained per Share1.391.521.61
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share1.391.521.61
(=) Adjusted Dividend1.441.571.66
WACC / Discount Rate9.94%9.94%9.94%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.81$14.24$16.74
Upside / Downside-72.63%-66.99%-61.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)203.30201.27199.25197.26195.29193.34199.14
Payout Ratio2.75%20.20%37.65%55.10%72.55%90.00%92.50%
Projected Dividends (M)5.6040.6675.02108.69141.68174.00184.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.94%9.94%9.94%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)36.6136.9937.36
Year 2 PV (M)60.8262.0763.33
Year 3 PV (M)79.3581.8084.30
Year 4 PV (M)93.1396.99100.96
Year 5 PV (M)102.98108.34113.92
PV of Terminal Value (M)1,570.901,652.701,737.87
Equity Value (M)1,943.782,038.882,137.75
Shares Outstanding (M)113.02113.02113.02
Fair Value$17.20$18.04$18.91
Upside / Downside-60.14%-58.19%-56.17%

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