Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

SpareBank 1 Sørøst-Norge (SB1NO.OL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,044.59 - $3,438.46$3,222.34
Multi-Stage$456.85 - $499.62$477.84
Blended Fair Value$1,850.09
Current Price$177.80
Upside940.55%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.48%17.09%5.284.774.095.860.003.072.901.361.021.36
YoY Growth--10.73%16.61%-30.23%0.00%-100.00%5.89%112.72%33.07%-25.00%25.18%
Dividend Yield--3.12%3.54%3.38%4.36%0.00%5.18%2.90%1.59%1.59%3.36%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,489.00
(-) Cash Dividends Paid (M)3,191.00
(=) Cash Retained (M)3,298.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,297.80811.13486.68
Cash Retained (M)3,298.003,298.003,298.00
(-) Cash Required (M)-1,297.80-811.13-486.68
(=) Excess Retained (M)2,000.202,486.882,811.33
(/) Shares Outstanding (M)375.31375.31375.31
(=) Excess Retained per Share5.336.637.49
LTM Dividend per Share8.508.508.50
(+) Excess Retained per Share5.336.637.49
(=) Adjusted Dividend13.8315.1315.99
WACC / Discount Rate6.90%6.90%6.90%
Growth Rate5.50%6.50%7.50%
Fair Value$1,044.59$3,222.34$3,438.46
Upside / Downside487.51%1,712.34%1,833.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,489.006,910.797,359.997,838.398,347.888,890.499,157.21
Payout Ratio49.18%57.34%65.51%73.67%81.84%90.00%92.50%
Projected Dividends (M)3,191.003,962.674,821.185,774.556,831.508,001.448,470.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.90%6.90%6.90%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)3,672.203,707.003,741.81
Year 2 PV (M)4,140.274,219.134,298.73
Year 3 PV (M)4,595.484,727.404,861.82
Year 4 PV (M)5,038.095,231.845,431.13
Year 5 PV (M)5,468.355,732.476,006.70
PV of Terminal Value (M)148,548.22155,723.15163,172.69
Equity Value (M)171,462.60179,341.00187,512.89
Shares Outstanding (M)375.31375.31375.31
Fair Value$456.85$477.84$499.62
Upside / Downside156.95%168.75%181.00%

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