Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Inspur Digital Enterprise Technology Limited (0596.HK)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$12.22 - $25.19$17.17
Multi-Stage$10.37 - $11.35$10.85
Blended Fair Value$14.01
Current Price$7.54
Upside85.83%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-5.75%2.26%0.030.020.000.000.000.040.020.020.020.02
YoY Growth--49.88%0.00%0.00%0.00%-100.00%59.39%5.68%0.00%0.00%-0.20%
Dividend Yield--0.80%0.93%0.00%0.00%0.00%1.25%0.74%1.11%1.39%1.67%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)781.56
(-) Cash Dividends Paid (M)55.86
(=) Cash Retained (M)725.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)156.3197.6958.62
Cash Retained (M)725.70725.70725.70
(-) Cash Required (M)-156.31-97.69-58.62
(=) Excess Retained (M)569.39628.01667.08
(/) Shares Outstanding (M)1,143.381,143.381,143.38
(=) Excess Retained per Share0.500.550.58
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.500.550.58
(=) Adjusted Dividend0.550.600.63
WACC / Discount Rate9.01%9.01%9.01%
Growth Rate4.34%5.34%6.34%
Fair Value$12.22$17.17$25.19
Upside / Downside62.05%127.71%234.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)781.56823.28867.23913.53962.301,013.681,044.09
Payout Ratio7.15%23.72%40.29%56.86%73.43%90.00%92.50%
Projected Dividends (M)55.86195.26349.39519.42706.61912.31965.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.01%9.01%9.01%
Growth Rate4.34%5.34%6.34%
Year 1 PV (M)177.43179.13180.83
Year 2 PV (M)288.48294.03299.64
Year 3 PV (M)389.69401.00412.53
Year 4 PV (M)481.70500.43519.71
Year 5 PV (M)565.11592.71621.39
PV of Terminal Value (M)9,956.9310,443.3010,948.51
Equity Value (M)11,859.3212,410.6112,982.60
Shares Outstanding (M)1,143.381,143.381,143.38
Fair Value$10.37$10.85$11.35
Upside / Downside37.56%43.96%50.59%

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