Editing Phoenix Group Holdings plc (section)

==== What are the assumptions used to estimate the return figure? ====
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
|Which model do you want to use?
|Gordon growth model
|The CFA institute recommends using the Gordon growth model (GGM) for companies with stable and predictable dividend policies.
|-
|What is the expected dividend in the next period (i.e., the next year)?
|53.75p
|Phoenix's most recent full-year dividend is 52.65p (FY23). Multiply that by the below growth rate (1.75%) equates to 53.75p per share.
|-
|What is the required rate of return or cost of equity?
|8.64%
|The assumptions for this can be found in the cost of equity table in the appendix of this report.
|-
|What is the expected growth rate of dividends?
|1.75%
|Since Phoenix's inception, its dividend CAGR is 1.75%, so the Stockhub crowd suggests using that amount here.
|-
|Which financial forecasts to use?
|The Stockhub crowd
|The only available forecasts are the ones that are supplied by the Stockhub crowd (the forecasts can be found in the financials section of this report), so the Stockhub crowd suggests using those.
|-
|What's the current value of the Phoenix company?
|£5.03 billion
|As at 16th November 2024, the current value of its company at £5.03 billion.<ref name=":9">https://www.telegraph.co.uk/business/2023/06/13/freetrade-stock-trading-start-up-valuation-plunge/</ref>
|-
|Which time period do you want to use to estimate the expected return?
|Between now and five years time
|The Stockhub crowd suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|}