Huntington Ingalls Industries, Inc. (HII) Two-Stage Excess Return Model - Discounting Cash Flows
Huntington Ingalls Industries, Inc.
HII (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
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Two-Stage Excess Return Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, represented by [Sum of discounted excess returns in Growth Stage], followed by a period of stable growth, represented by [Discounted excess return in terminal stage]. 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).

Read more: GitHub Documentation

Interactive Assumptions

Results

Estimated Value 3.18 Thou. USD
Book value of equity invested 121.5 USD
Sum of discounted excess returns in Growth Stage 154.4 USD
Terminal stage EPS 57.59 USD
Terminal stage Book Value 198.9 USD
Terminal stage Equity Cost 11.1 USD
Discounted excess return in terminal stage 2.9 Thou. USD
Excess Returns in the Terminal Stage 3.81 Thou. USD
Terminal Cost of Equity (the discount rate) 5.58%
Terminal year's excess return 46.49 USD
Average historical Return on Equity 28.96%
Average historical Payout Ratio 27.44%
Payout Ratio in stable stage 84.94%
Yield of the U.S. 10 Year Treasury Bond 4.36%

Historical and Forecasted Data

In USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 102.6 118.4 118.4 139.4 159.4 176.9 190.5
Ending Book Value 118.4 121.5 139.4 159.4 176.9 190.5 198.9
EPS 13.96 13.88 34.3 40.36 46.15 51.24 55.18
Return on Equity 13.44% 11.7% 28.96% 28.96% 28.96% 28.96% 28.96%
Dividend per Share 5.25 5.35 13.36 20.36 28.59 37.63 46.87
Payout Ratio 37.61% 38.54% 38.94% 50.44% 61.94% 73.44% 84.94%
Retained Earnings 8.71 8.53 20.94 20.0 17.56 13.61 8.31
Equity Cost 5.73 6.61 6.61 7.78 8.89 9.87 10.63
Cost of Equity 5.58% 5.58% 5.58% 5.58% 5.58% 5.58% 5.58%
Excess Return 8.23 7.27 27.69 32.58 37.26 41.37 44.55
Discounted Excess Return
26.22 29.23 31.66 33.29 33.95

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 585.2 546 550 681 579 544 696 549 836 479 573 404
Total Stockholders Equity 2,703 4,773 4,666 4,093 3,489 2,808 1,901 1,588 1,516 1,758 1,653 1,490
Return on Equity 28.96% 11.7% 13.44% 19.52% 20.62% 28.62% 43.83% 36.21% 47.55% 28.98% 38.46% 29.6%
Dividends Paid to Common Shareholders 158.4 210.3 206.8 200.3 191.7 185.4 171.7 149.5 132.3 115.2 98.28 81.43
Payout Ratio 27.44% 38.54% 37.61% 29.41% 33.1% 34.07% 24.68% 27.22% 15.82% 24.05% 17.16% 20.17%
Shares Outstanding 42.29 39.3 39.4 39.9 40.1 40.3 40.6 41.4 43.8 45.7 46.8 47.9
Earnings per Share 13.95 13.88 13.96 17.07 14.44 13.5 17.14 13.26 19.09 10.48 12.24 8.43
Dividend per Share 3.83 5.35 5.25 5.02 4.78 4.6 4.23 3.61 3.02 2.52 2.1 1.7
Dividend Growth Rate 17.66% 1.91% 4.58% 5.02% 3.91% 8.75% 17.17% 19.54% 19.84% 20% 23.53% 70%
Book Value 65.81 121.5 118.4 102.6 87.01 69.68 46.82 38.36 34.61 38.47 35.32 31.11
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Discounting Cash Flows

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