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DNB Bank ASA (0O84.L)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,718.89 - $6,201.62$5,470.94
Multi-Stage$799.57 - $874.06$836.14
Blended Fair Value$3,153.54
Current Price$187.15
Upside1,585.03%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.94%19.45%17.4813.8010.8618.741.069.518.296.725.274.21
YoY Growth--26.67%27.02%-42.04%1,668.19%-88.85%14.71%23.32%27.56%25.26%42.43%
Dividend Yield--9.34%7.37%5.81%9.14%0.55%4.95%4.31%3.50%2.74%2.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46,422.00
(-) Cash Dividends Paid (M)25,981.00
(=) Cash Retained (M)20,441.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9,284.405,802.753,481.65
Cash Retained (M)20,441.0020,441.0020,441.00
(-) Cash Required (M)-9,284.40-5,802.75-3,481.65
(=) Excess Retained (M)11,156.6014,638.2516,959.35
(/) Shares Outstanding (M)1,488.671,488.671,488.67
(=) Excess Retained per Share7.499.8311.39
LTM Dividend per Share17.4517.4517.45
(+) Excess Retained per Share7.499.8311.39
(=) Adjusted Dividend24.9527.2928.84
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$1,718.89$5,470.94$6,201.62
Upside / Downside818.46%2,823.29%3,213.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46,422.0049,439.4352,652.9956,075.4459,720.3463,602.1665,510.23
Payout Ratio55.97%62.77%69.58%76.39%83.19%90.00%92.50%
Projected Dividends (M)25,981.0031,034.9136,636.0642,834.2349,683.3857,241.9560,596.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)28,723.8828,996.1529,268.41
Year 2 PV (M)31,382.9731,980.7332,584.12
Year 3 PV (M)33,960.1034,934.9735,928.32
Year 4 PV (M)36,457.0737,859.1039,301.19
Year 5 PV (M)38,875.6440,753.3542,702.93
PV of Terminal Value (M)1,020,903.331,070,213.351,121,410.57
Equity Value (M)1,190,302.991,244,737.641,301,195.54
Shares Outstanding (M)1,488.671,488.671,488.67
Fair Value$799.57$836.14$874.06
Upside / Downside327.24%346.78%367.04%

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