Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Templeton Emerging Markets Income Fund (TEI)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$5.07 - $6.67$5.91
Multi-Stage$11.40 - $12.57$11.98
Blended Fair Value$8.94
Current Price$6.00
Upside49.07%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-8.70%0.460.450.530.000.000.000.530.500.130.93
YoY Growth--0.40%-14.09%0.00%0.00%0.00%-100.00%5.48%293.54%-86.21%-17.90%
Dividend Yield--8.89%8.89%9.63%0.00%0.00%0.00%5.53%4.52%1.18%8.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)82.95
(-) Cash Dividends Paid (M)53.63
(=) Cash Retained (M)29.32
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.5910.376.22
Cash Retained (M)29.3229.3229.32
(-) Cash Required (M)-16.59-10.37-6.22
(=) Excess Retained (M)12.7318.9523.10
(/) Shares Outstanding (M)59.0459.0459.04
(=) Excess Retained per Share0.220.320.39
LTM Dividend per Share0.910.910.91
(+) Excess Retained per Share0.220.320.39
(=) Adjusted Dividend1.121.231.30
WACC / Discount Rate8.94%8.94%8.94%
Growth Rate-10.81%-9.81%-8.81%
Fair Value$5.07$5.91$6.67
Upside / Downside-15.43%-1.47%11.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)82.9574.8167.4760.8554.8849.4950.98
Payout Ratio64.65%69.72%74.79%79.86%84.93%90.00%92.50%
Projected Dividends (M)53.6352.1650.4648.5946.6144.5447.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.94%8.94%8.94%
Growth Rate-10.81%-9.81%-8.81%
Year 1 PV (M)47.3547.8848.41
Year 2 PV (M)41.5842.5243.46
Year 3 PV (M)36.3537.5838.85
Year 4 PV (M)31.6433.0934.58
Year 5 PV (M)27.4529.0230.67
PV of Terminal Value (M)488.91516.94546.25
Equity Value (M)673.28707.03742.21
Shares Outstanding (M)59.0459.0459.04
Fair Value$11.40$11.98$12.57
Upside / Downside90.08%99.61%109.54%

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