Derwent London Plc (DLN.L) Simple Excess Return Model - Discounting Cash Flows
DLN.L
Derwent London Plc
DLN.L (LSE)

Estimated Value

GBp

Market Price GBp

* Values are not guaranteed, please do your own
research before making investment decisions.

Simple Excess Return Model

Used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no high growth chance. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

See our GitHub Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Return On Equity

Return on Equity

Return On Equity (ROE) is used to estimate the Earnings Per Share (EPS) expressed as a percentage of Book Value.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow in perpetuity. By default, this is equal to the yield of the U.S. 10 Year Treasury Bond.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

Results

Estimated Value -402 GBp
Book value of equity invested 3.13 Thou. GBp
Next year's estimated book value 3.28 Thou. GBp
Present value of future excess returns -3.54 Thou. GBp
Excess Return per share -207.6 GBp
Cost of Equity (the discount rate) 10.22%
Average historical Return on Equity 3.62%
Average historical Payout Ratio 18.96%
Payout Ratio used -20.27%
Risk Free Rate of the 10 Year U.S. Treasury Note 4.35%

Historical and Forecasted Data

Monetary values are in GBp

amounts of GBp except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 3124 3143 3143 3280 3423 3572 3727
Ending Book Value 3143 3134 3280 3423 3572 3727 3889
EPS 103.0 102.0 113.7 118.7 123.8 129.2 134.8
Return on Equity 3.3% 3.27% 3.62% 3.62% 3.62% 3.62% 3.62%
Dividend per Share 80 66.13 -23.04 -24.05 -25.09 -26.18 -27.32
Retained Earnings 23.0 35.87 136.7 142.7 148.9 155.4 162.1
Equity Cost per Share 319.3 321.3 321.3 335.3 349.8 365.1 380.9
Cost of Equity 10.22% 10.22% 10.22% 10.22% 10.22% 10.22% 10.22%
Excess Return -216.3 -219.3 -207.6 -216.6 -226.0 -235.9 -246.1

amounts of GBp except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 11,765 11,590 11,590 -47,640 -28,050 25,230 -7,760 28,340 22,230 31,400 5,870 76,620
Total Equity 399,774 353,980 353,980 350,880 407,550 444,180 426,320 442,120 420,190 412,830 393,230 392,250
Return on Equity 3.62% 3.27% 3.3% -11.69% -6.31% 5.92% -1.75% 6.74% 5.38% 7.99% 1.5% 25.44%
Dividends Paid to Common Shareholders 7,815 7,469 9,008 8,871 8,701 8,461 8,220 7,564 10,494 7,726 4,971 4,479
Payout Ratio 18.97% 64.83% 77.67% -18.63% -31% 33.53% -106.4% 26.67% 47.29% 24.59% 84.26% 5.84%
Shares Outstanding 111.9 112.9 112.6 112.3 112.3 112.1 111.9 111.7 111.5 111.4 111.3 110.3
EPS 106.4 102.0 103.0 -424.0 -250.0 225.0 -69.0 254.0 199.0 282.0 53.0 695.0
Dividend per Share 69.82 66.13 80 79.0 77.5 75.45 73.45 67.75 94.1 69.33 44.66 40.6
Book Value 3574 3134 3143 3124 3630 3960 3809 3959 3767 3704 3532 3555
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Discounting Cash Flows

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