{"id":3423,"date":"2024-09-16T20:14:11","date_gmt":"2024-09-16T16:14:11","guid":{"rendered":"https:\/\/eoninvestment.com\/?p=3423"},"modified":"2024-09-16T20:14:11","modified_gmt":"2024-09-16T16:14:11","slug":"payout-decision","status":"publish","type":"post","link":"https:\/\/eoninvestment.com\/ka\/2024\/09\/16\/payout-decision\/","title":{"rendered":"Payout Decisions"},"content":{"rendered":"\n

The decision to pay dividends or repurchase shares impacts stock prices due to the expectations and signals such decisions create. Therefore, these decisions need to be systematic and well-considered. The process can be divided into four stages:<\/p>\n\n\n\n

    \n
  1. Forecasting various scenarios of operational cash flows<\/strong> – What will cash flow forecasts look like in the case of intensified competition or an economic recession?<\/li>\n\n\n\n
  2. Determining the target capital (D\/E) structure<\/strong> – If we rely on ratings, the debt level might be defined by Coverage & Leverage multiples. For example, the EBITDA-to-Debt Ratio.<\/li>\n\n\n\n
  3. Assessing cash deficits and surpluses<\/strong> – Based on the previous two stages, what deficit or surplus cash is generated in the cash flows?<\/li>\n\n\n\n
  4. Planning dividend or share repurchase decisions<\/strong> – The level of dividends is set for the worst-case scenario, while repurchases are considered in cases of surplus cash.<\/li>\n<\/ol>\n\n\n\n

    \"\"<\/p>\n\n\n\n

    Excel File<\/a><\/strong> with formulas.<\/p>\n\n\n\n

    Source:<\/p>\n\n\n\n

    Valuation: Measuring and Managing the Value of Companies<\/em> – by McKinsey & Co, T. Koller, M. Goedhart, D. Wessels<\/p>\n\n\n\n

    ——————————————————————————————————————–<\/p>\n\n\n\n

    \u10d3\u10d8\u10d5\u10d8\u10d3\u10d4\u10dc\u10d3\u10d4\u10d1\u10d8\u10e1 \u10d2\u10d0\u10ea\u10d4\u10db\u10d8\u10e1 \u10d0\u10dc \u10d0\u10e5\u10ea\u10d8\u10d4\u10d1\u10d8\u10e1 \u10d2\u10d0\u10db\u10dd\u10e1\u10e7\u10d8\u10d3\u10d5\u10d8\u10e1 \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d8\u10da\u10d4\u10d1\u10d0 \u10d2\u10d0\u10d5\u10da\u10d4\u10dc\u10d0\u10e1 \u10d0\u10ee\u10d3\u10d4\u10dc\u10e1 \u10d0\u10e5\u10ea\u10d8\u10d4\u10d1\u10d8\u10e1 \u10e4\u10d0\u10e1\u10d6\u10d4, \u10d2\u10d0\u10db\u10dd\u10db\u10d3\u10d8\u10dc\u10d0\u10e0\u10d4 \u10e8\u10d4\u10e5\u10db\u10dc\u10d8\u10da\u10d8 \u10db\u10dd\u10da\u10dd\u10d3\u10d8\u10dc\u10d4\u10d1\u10d8\u10d3\u10d0\u10dc \u10d3\u10d0 \u10e1\u10d8\u10d2\u10dc\u10d0\u10da\u10d4\u10d1\u10d8\u10d3\u10d0\u10dc, \u10e0\u10dd\u10db\u10da\u10d4\u10d1\u10e1\u10d0\u10ea \u10d0\u10e1\u10d4\u10d7\u10d8 \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d8\u10da\u10d4\u10d1\u10d4\u10d1\u10d8 \u10d8\u10eb\u10da\u10d4\u10d5\u10d8\u10d0\u10dc. \u10d0\u10db\u10d8\u10e2\u10dd\u10db \u10e1\u10d0\u10ed\u10d8\u10e0\u10dd\u10d0 \u10d0\u10db \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d8\u10da\u10d4\u10d1\u10d4\u10d1\u10e1 \u10e1\u10d8\u10e1\u10e2\u10d4\u10db\u10e3\u10e0\u10d8 \u10d3\u10d0 \u10d2\u10d0\u10d0\u10d6\u10e0\u10d4\u10d1\u10e3\u10da\u10d8 \u10ee\u10d0\u10e1\u10d8\u10d0\u10d7\u10d8 \u10e5\u10dd\u10dc\u10d3\u10d4\u10e1. \u10de\u10e0\u10dd\u10ea\u10d4\u10e1\u10d8 \u10e8\u10d4\u10d8\u10eb\u10da\u10d4\u10d1\u10d0 4 \u10d4\u10e2\u10d0\u10de\u10d0\u10d3 \u10d3\u10d0\u10d8\u10e7\u10dd\u10e1:<\/p>\n\n\n\n

      \n
    1. \u10e1\u10d0\u10dd\u10de\u10d4\u10e0\u10d0\u10ea\u10d8\u10dd \u10e4\u10e3\u10da\u10d0\u10d3\u10d8 \u10dc\u10d0\u10d9\u10d3\u10d4\u10d1\u10d8\u10e1 \u10e1\u10ee\u10d5\u10d0\u10d3\u10d0\u10e1\u10ee\u10d5\u10d0 \u10e1\u10ea\u10d4\u10dc\u10d0\u10e0\u10d4\u10d1\u10d8\u10e1 \u10de\u10e0\u10dd\u10d2\u10dc\u10dd\u10d6\u10d8\u10e0\u10d4\u10d1\u10d0,<\/strong> – \u10e0\u10dd\u10d2\u10dd\u10e0\u10d8 \u10d8\u10e5\u10dc\u10d4\u10d1\u10d0 \u10e4\u10e3\u10da\u10d0\u10d3\u10d8\u10dc \u10dc\u10d0\u10d9\u10d0\u10d3\u10d4\u10d1\u10d8\u10e1 \u10de\u10e0\u10dd\u10d2\u10dc\u10dd\u10d6\u10d4\u10d1\u10d8 \u10d9\u10dd\u10dc\u10d9\u10e3\u10e0\u10d4\u10dc\u10ea\u10d8\u10d8\u10e1 \u10d2\u10d0\u10dc\u10db\u10ec\u10d5\u10d0\u10d5\u10d4\u10d1\u10d8\u10e1 \u10d0\u10dc \u10d4\u10d9\u10dd\u10dc\u10dd\u10db\u10d8\u10d9\u10e3\u10e0\u10d8 \u10e0\u10d4\u10ea\u10d4\u10e1\u10d8\u10d8\u10e1 \u10e8\u10d4\u10db\u10d7\u10ee\u10d5\u10d4\u10d5\u10d0\u10e8\u10d8;<\/li>\n\n\n\n
    2. \u10db\u10d8\u10d6\u10dc\u10dd\u10d1\u10e0\u10d8\u10d5\u10d8 \u10d9\u10d0\u10de\u10d8\u10e2\u10d0\u10da\u10d8\u10e1 (D\/E) \u10e1\u10e2\u10e0\u10e3\u10e5\u10e2\u10e3\u10e0\u10d8\u10e1 \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d0 <\/strong>– \u10d7\u10e3 \u10d3\u10d0\u10d5\u10d4\u10e7\u10e0\u10d3\u10dc\u10dd\u10d1\u10d8\u10d7 \u10e0\u10d4\u10d8\u10e2\u10d8\u10dc\u10d2\u10d4\u10d1\u10e1, \u10e8\u10d4\u10e1\u10d0\u10eb\u10da\u10dd\u10d0 \u10e1\u10d4\u10e1\u10ee\u10d8\u10e1 \u10d3\u10dd\u10dc\u10d4 \u10d2\u10d0\u10dc\u10d8\u10e1\u10d0\u10d6\u10e6\u10d5\u10e0\u10dd\u10e1 Coverage & Leverage \u10db\u10d0\u10db\u10e0\u10d0\u10d5\u10da\u10d4\u10d1\u10d8\u10d7. \u10d3\u10d0\u10d5\u10e3\u10e8\u10d5\u10d0\u10d7 EBITDA-to-Debt Ratio;<\/li>\n\n\n\n
    3. \u10dc\u10d0\u10e6\u10d3\u10d8 \u10e4\u10e3\u10da\u10d8\u10e1 \u10d3\u10d4\u10e4\u10d8\u10ea\u10d8\u10e2\u10d8\u10e1 \u10d3\u10d0 \u10de\u10e0\u10d4\u10e4\u10d8\u10ea\u10d8\u10e2\u10d8\u10e1 \u10e8\u10d4\u10e4\u10d0\u10e1\u10d4\u10d1\u10d0<\/strong> – \u10d2\u10d0\u10db\u10dd\u10d3\u10d8\u10dc\u10d0\u10e0\u10d4 \u10ec\u10d8\u10dc\u10d0 \u10dd\u10e0\u10d8 \u10d4\u10e2\u10d0\u10de\u10d8\u10d3\u10d0\u10dc, \u10e0\u10d0 \u10d3\u10d4\u10e4\u10d8\u10ea\u10d8\u10e2\u10d8 \u10d0\u10dc \u10ed\u10d0\u10e0\u10d1\u10d8 \u10e4\u10e3\u10da\u10d8 \u10d2\u10d5\u10e5\u10db\u10dc\u10d4\u10d1\u10d0 \u10e4\u10e3\u10da\u10d0\u10d3 \u10dc\u10d0\u10d9\u10d0\u10d3\u10d4\u10d1\u10e8\u10d8;<\/li>\n\n\n\n
    4. \u10d3\u10d8\u10d5\u10d8\u10d3\u10d4\u10dc\u10d3\u10d4\u10d1\u10d8\u10e1 \u10d0\u10dc \u10d0\u10e5\u10ea\u10d8\u10d4\u10d1\u10d8\u10e1 \u10d2\u10d0\u10db\u10dd\u10e1\u10e7\u10d8\u10d3\u10d5\u10d8\u10e1 \u10d2\u10d0\u10d3\u10d0\u10ec\u10e7\u10d5\u10d4\u10e2\u10d8\u10da\u10d4\u10d1\u10d4\u10d1\u10d8\u10e1 \u10d3\u10d0\u10d2\u10d4\u10d2\u10db\u10d5\u10d0<\/strong> – \u10d3\u10d8\u10d5\u10d8\u10d3\u10d4\u10dc\u10d3\u10d4\u10d1\u10d8\u10e1 \u10d3\u10dd\u10dc\u10d4 \u10d2\u10d0\u10dc\u10d8\u10e1\u10d0\u10d6\u10e6\u10d5\u10e0\u10d4\u10d1\u10d0 \u10e7\u10d5\u10d4\u10da\u10d0\u10d6\u10d4 \u10db\u10eb\u10d8\u10db\u10d4 \u10e1\u10ea\u10d4\u10dc\u10d0\u10e0\u10d8\u10e1\u10d7\u10d5\u10d8\u10e1, \u10ee\u10dd\u10da\u10dd \u10d2\u10d0\u10db\u10dd\u10e1\u10e7\u10d8\u10d3\u10d5\u10d0 \u10ed\u10d0\u10e0\u10d1\u10d8 \u10e4\u10e3\u10da\u10d8\u10e1 \u10e8\u10d4\u10db\u10d7\u10ee\u10d5\u10d4\u10d5\u10d4\u10d1\u10e8\u10d8.<\/li>\n<\/ol>\n\n\n\n
      \"\"<\/a><\/figure>\n\n\n\n

      \u10d4\u10e5\u10e1\u10d4\u10da\u10d8\u10e1 \u10e4\u10d0\u10d8\u10da\u10d8:<\/a><\/p>\n\n\n\n

      \u10ec\u10e7\u10d0\u10e0\u10dd:<\/p>\n\n\n\n

      Valuation, Measuring and Managing the Value of Companies – by McK.&Co, T. Koller, M. Goedhart, D. Wessels<\/p>\n","protected":false},"excerpt":{"rendered":"

      The decision to pay dividends or repurchase shares impacts stock prices due to the expectations and signals such decisions create. Therefore, these decisions need to be systematic and well-considered. The process can be divided into four stages: Excel File with formulas. Source: Valuation: Measuring and Managing the Value of Companies – by McKinsey & Co, […]<\/p>\n","protected":false},"author":12998525,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[774675935,31110612,772049227],"tags":[],"class_list":["post-3423","post","type-post","status-publish","format-standard","hentry","category-valuation-measuring-and-managing-the-value-of-companies-by-mck-co-t-koller-m-goedhart-d-wessels","category-excel-models","category-wacc-coc-structure","has-post-thumbnail","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pQZ85-Td","_links":{"self":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/3423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/users\/12998525"}],"replies":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/comments?post=3423"}],"version-history":[{"count":16,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/3423\/revisions"}],"predecessor-version":[{"id":3580,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/3423\/revisions\/3580"}],"wp:attachment":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/media?parent=3423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/categories?post=3423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/tags?post=3423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}