Derwent London Plc (DLN.L) Simple Dividend Discount 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 Dividend Discount Model

This model is used to estimate the value of companies that have reached maturity and pay stable dividends as a significant percentage of their Free Cashflow to Equity, with little to no high growth chance.

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

The 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.

Expected Dividend

Expected Dividend

The estimated annual dividend per share for the next year.

Growth In Perpetuity

Growth in Perpetuity

The rate at which the company's free cash flow is assumed to grow indefinitely. 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.

Forecast Years

Forecast Years

The number of years into the future for which the analysis projects financial performance and metrics.

Results

LTM dividend 66.13 GBp
Next year's expected dividend 77.92 GBp
Cost of Equity 10.22%
Expected Growth Rate 4.35%

Historical and Projected Dividends

Monetary values are in GBp

amounts of GBp except for #

2024 LTM 2025 2026 2027 2028 2029
Dividend per Share 80 66.13 77.92 81.31 84.85 88.54 92.39
Dividend Growth Rate 1.27% -17.34% -2.6% 4.35% 4.35% 4.35% 4.35%

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
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%
Common Dividends 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
Reference Market Price 2873 1987 1959 2360 2368 3415 3096 4010 2853 3118 2772 3672
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
Dividend Growth Rate 7.38% -17.34% 1.27% 1.93% 2.72% 2.72% 8.41% -28% 35.73% 55.24% 10% 8.56%
Dividend Yield 2.6% 3.33% 4.08% 3.35% 3.27% 2.21% 2.37% 1.69% 3.3% 2.22% 1.61% 1.11%
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Discounting Cash Flows

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