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Definitive Analysis

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Page: Dividend Discount Model

National Bank of Canada

Ticker: NA-PC.TO | Industry: Banks - Diversified | Sector: Financial Services
$26.51 +0.12 (0.45%)
As of: 2026-01-23

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Dividend Discount Models Snapshot

ModelRangeSelected
Stable Growth DDM$400.38 - $1,021.97$594.92
Multi-Stage DDM$153.04 - $167.27$160.02
Blended Fair Value$377.47
Stock Price$26.84

Dividend History (Last 10 Years)

Metric2025202420232022202120202019201820172016
DPS5.1044.7844.4113.8873.2303.8512.9382.6752.4541.765
YoY %6.69%8.46%13.46%20.35%-16.12%31.07%9.86%8.99%39.01%-17.98%
Yield19.015%17.823%16.433%14.484%12.034%14.348%10.947%9.965%9.142%6.577%

CAGRValue
5 Year5.79%
10 Year9.02%

Discounted Dividend Model - Stable Growth

MetricRangeSelected
LT Growth5.50% to 7.50%6.50%
WACC9.06%9.06%
Fair Value$400.38 - $1,021.97$594.92

Calculation Details (Millions)

MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(*) Adjusted Net Income4,017.004,017.004,017.00
(=) Cash Required803.40502.13301.28
Cash Retained4,017.004,017.004,017.00
(-) Cash Required-803.40-502.13-301.28
(=) Excess Retained3,213.603,514.883,715.73
(/) Shares Outstanding382,478,000382,478,000382,478,000
(=) Excess Retained per Share8.409.199.71
LTM Dividend per Share5.1045.1045.104
(+) Excess Retained per Share8.409.199.71
(=) Adjusted Dividend13.50614.29314.818

Multi-Stage Projections (BASE Case - Millions)

MetricTTMYear 1Year 2Year 3Year 4Year 5
Net Income4,017.004,278.114,556.184,852.335,167.745,503.64
Payout Ratio48.6%25.0%41.0%57.0%73.0%90.0%
Projected Dividends1,952.001,069.531,868.032,765.833,772.454,953.27

Multi-Stage Valuation (Millions)

Present ValuesLOWBASEHIGH
Year 1 PV1,014.531,024.141,033.76
Year 2 PV1,609.531,640.191,671.14
Year 3 PV2,164.632,226.772,290.08
Year 4 PV2,681.782,784.912,890.99
Year 5 PV3,198.413,352.903,513.30
TV PV47,863.9450,175.7852,576.11
Equity Value58,532.8261,204.6963,975.37
Fair Value$153.04$160.02$167.27
Stock Price$26.84$26.84$26.84

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