Ford Motor Company (F) Two-Stage Dividend Discount Model - Discounting Cash Flows
F
Ford Motor Company
F (NYSE)

Estimated Value

USD

Market Price USD

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

Two-Stage Dividend Discount Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, calculated using [Sum of Discounted Dividends], followed by a period of stable growth, calculated using [Discounted Terminal Value].

Read more: 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.

High Growth Years

High Growth Years

The estimated number of years during which the company is expected to experience high growth. After this period, the company will transition to a stable growth phase.

Historical Years

Historical Years

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

High Growth Rate

High Growth Rate

The estimated growth rate of Earnings Per Share (EPS) during the high-growth phase.

High Growth Payout

High Growth Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) during the high-growth phase.

Stable Growth In Perpetuity

Stable Growth in Perpetuity

The estimated stable rate at which the company's Earnings Per Share (EPS) will grow in perpetuity after the last projected period.

Stable Payout

Stable Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) after the last projected period.

Results

Sum of discounted dividends 5.5 USD
Discounted terminal value 26.53 USD
Terminal value 44.46 USD
Dividend in stable phase 2.9 USD
EPS in stable phase 4.06 USD
Average historical Dividend Growth Rate 39.97%
Average historical Payout Ratio 348.7%
Average historical Return on Equity 15.25%

Historical and Projected Dividends

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Earnings Per Share 1.48 1.27 1.01 1.42 1.99 2.78 3.89
Dividend per Share 0.63 0.75 0.725 1.01 1.42 1.99 2.78
Dividend Growth Rate -42.73% 19.05% 15.06% 39.97% 39.97% 39.97% 39.97%
Discounted Dividend 0.63 0.75 0.654 0.825 1.04 1.32 1.66

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 4,826 5,018 5,879 4,347 -2,152 17,937 -1,276 84 3,677 7,602 4,596 7,373
Equity 37,865 44,635 44,835 42,773 43,242 48,519 30,690 33,185 35,932 34,890 29,170 28,642
Return on Equity 15.25% 11.19% 13.74% 10.05% -4.44% 58.45% -3.84% 0.234% 10.54% 26.06% 16.05% 29.72%
Common Dividends 2,445 2,976 2,506 4,398 2,007 399.1 596 2,979 2,886 2,388 3,377 2,381
Payout Ratio 348.7% 59.06% 42.57% 100.9% -92.59% 2.23% -46.88% 3,555% 78.49% 31.41% 73.28% 32.26%
Shares Outstanding 3,979 3,968 3,978 3,998 4,014 3,991 3,973 3,972 3,954 3,980 3,973 3,969
Reference Market Price 11.89 11.81 9.9 12.19 11.63 20.77 8.79 9.3 7.65 12.49 12.13 14.09
EPS 1.21 1.27 1.48 1.09 -0.54 4.49 -0.32 0.021 0.93 1.91 1.16 1.86
Dividend per Share 0.615 0.75 0.63 1.1 0.5 0.1 0.15 0.75 0.73 0.6 0.85 0.6
Dividend Growth Rate 39.97% 19.05% -42.73% 120% 400% -33.33% -80% 2.74% 21.67% -29.41% 41.67% 20%
Dividend Yield 5.63% 6.35% 6.36% 9.02% 4.3% 0.481% 1.71% 8.06% 9.54% 4.8% 7.01% 4.26%
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Discounting Cash Flows

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