Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Taiwan Fire & Marine Insurance Co., Ltd. (2832.TW)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$57.79 - $115.56$80.31
Multi-Stage$48.07 - $52.36$50.18
Blended Fair Value$65.24
Current Price$53.57
Upside21.79%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.63%1.64%1.421.090.821.201.090.981.200.981.310.99
YoY Growth--30.00%33.33%-31.82%10.00%11.11%-18.18%22.22%-25.00%32.74%-18.18%
Dividend Yield--4.22%4.12%3.95%5.80%4.88%5.35%5.98%4.77%6.89%4.61%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,108.58
(-) Cash Dividends Paid (M)724.40
(=) Cash Retained (M)384.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)221.72138.5783.14
Cash Retained (M)384.18384.18384.18
(-) Cash Required (M)-221.72-138.57-83.14
(=) Excess Retained (M)162.46245.60301.03
(/) Shares Outstanding (M)331.26331.26331.26
(=) Excess Retained per Share0.490.740.91
LTM Dividend per Share2.192.192.19
(+) Excess Retained per Share0.490.740.91
(=) Adjusted Dividend2.682.933.10
WACC / Discount Rate9.98%9.98%9.98%
Growth Rate5.11%6.11%7.11%
Fair Value$57.79$80.31$115.56
Upside / Downside7.89%49.91%115.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,108.581,176.361,248.281,324.601,405.581,491.521,536.27
Payout Ratio65.35%70.28%75.21%80.14%85.07%90.00%92.50%
Projected Dividends (M)724.40826.70938.791,061.511,195.721,342.371,421.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.98%9.98%9.98%
Growth Rate5.11%6.11%7.11%
Year 1 PV (M)744.57751.66758.74
Year 2 PV (M)761.54776.10790.79
Year 3 PV (M)775.54797.89820.66
Year 4 PV (M)786.82817.19848.43
Year 5 PV (M)795.57834.14874.19
PV of Terminal Value (M)12,060.2112,644.9113,252.06
Equity Value (M)15,924.2616,621.8817,344.88
Shares Outstanding (M)331.26331.26331.26
Fair Value$48.07$50.18$52.36
Upside / Downside-10.26%-6.33%-2.26%

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