Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

LG Electronics Inc. (066570.KS)

Company Dividend Discount ModelIndustry: Consumer ElectronicsSector: Technology

Valuation Snapshot

Stable Growth$182,832.87 - $804,340.73$434,826.18
Multi-Stage$118,194.32 - $129,483.89$123,734.39
Blended Fair Value$279,280.29
Current Price$73,800.00
Upside278.43%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.52%15.73%1,753.24702.52898.981,612.211,301.921,278.30403.48403.79649.98603.42
YoY Growth--149.56%-21.85%-44.24%23.83%1.85%216.82%-0.08%-37.88%7.72%48.39%
Dividend Yield--2.27%0.73%0.78%1.34%0.87%2.65%0.53%0.37%0.96%0.98%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)737,302.00
(-) Cash Dividends Paid (M)266,338.00
(=) Cash Retained (M)470,964.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)147,460.4092,162.7555,297.65
Cash Retained (M)470,964.00470,964.00470,964.00
(-) Cash Required (M)-147,460.40-92,162.75-55,297.65
(=) Excess Retained (M)323,503.60378,801.25415,666.35
(/) Shares Outstanding (M)180.64180.64180.64
(=) Excess Retained per Share1,790.852,096.972,301.05
LTM Dividend per Share1,474.401,474.401,474.40
(+) Excess Retained per Share1,790.852,096.972,301.05
(=) Adjusted Dividend3,265.253,571.373,775.45
WACC / Discount Rate6.39%6.39%6.39%
Growth Rate4.52%5.52%6.52%
Fair Value$182,832.87$434,826.18$804,340.73
Upside / Downside147.74%489.20%989.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)737,302.00778,020.05820,986.78866,326.38914,169.90964,655.61993,595.28
Payout Ratio36.12%46.90%57.67%68.45%79.22%90.00%92.50%
Projected Dividends (M)266,338.00364,880.98473,495.88592,994.61724,248.04868,190.05919,075.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.39%6.39%6.39%
Growth Rate4.52%5.52%6.52%
Year 1 PV (M)339,717.67342,967.85346,218.04
Year 2 PV (M)410,440.32418,331.51426,297.84
Year 3 PV (M)478,576.62492,444.53506,577.79
Year 4 PV (M)544,195.53565,322.27587,058.25
Year 5 PV (M)607,364.43636,979.94667,739.60
PV of Terminal Value (M)18,970,564.1719,895,581.9720,856,336.55
Equity Value (M)21,350,858.7422,351,628.0723,390,228.06
Shares Outstanding (M)180.64180.64180.64
Fair Value$118,194.32$123,734.39$129,483.89
Upside / Downside60.15%67.66%75.45%

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