Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MetLife, Inc. (0K0X.L)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$42.85 - $62.84$52.48
Multi-Stage$84.54 - $92.98$88.68
Blended Fair Value$70.58
Current Price$81.40
Upside-13.29%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.46%-0.60%2.242.302.612.702.722.672.672.672.702.59
YoY Growth---2.49%-12.17%-3.20%-0.91%2.09%0.11%-0.05%-1.03%3.96%9.13%
Dividend Yield--2.81%3.12%4.53%3.79%4.47%8.54%6.08%5.81%5.05%4.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,841.00
(-) Cash Dividends Paid (M)1,578.00
(=) Cash Retained (M)2,263.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)768.20480.13288.08
Cash Retained (M)2,263.002,263.002,263.00
(-) Cash Required (M)-768.20-480.13-288.08
(=) Excess Retained (M)1,494.801,782.881,974.93
(/) Shares Outstanding (M)682.25682.25682.25
(=) Excess Retained per Share2.192.612.89
LTM Dividend per Share2.312.312.31
(+) Excess Retained per Share2.192.612.89
(=) Adjusted Dividend4.504.935.21
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate-2.60%-1.60%-0.60%
Fair Value$42.85$52.48$62.84
Upside / Downside-47.35%-35.53%-22.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,841.003,779.713,719.403,660.063,601.663,544.193,650.51
Payout Ratio41.08%50.87%60.65%70.43%80.22%90.00%92.50%
Projected Dividends (M)1,578.001,922.612,255.812,577.902,889.133,189.773,376.73

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.64%7.64%7.64%
Growth Rate-2.60%-1.60%-0.60%
Year 1 PV (M)1,767.971,786.121,804.27
Year 2 PV (M)1,907.531,946.901,986.67
Year 3 PV (M)2,004.552,066.932,130.58
Year 4 PV (M)2,065.872,152.022,240.84
Year 5 PV (M)2,097.392,207.292,321.74
PV of Terminal Value (M)47,835.3950,341.8352,952.25
Equity Value (M)57,678.6960,501.0863,436.35
Shares Outstanding (M)682.25682.25682.25
Fair Value$84.54$88.68$92.98
Upside / Downside3.86%8.94%14.23%

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