Definitive Analysis
Definitive Analysis

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Singapore Technologies Engineering Ltd (S63.SI)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$10.12 - $26.17$15.36
Multi-Stage$10.09 - $11.03$10.55
Blended Fair Value$12.95
Current Price$7.79
Upside66.27%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.28%0.00%0.160.160.220.150.150.150.150.150.150.16
YoY Growth--0.04%-27.27%46.54%-0.03%-0.03%0.03%0.08%0.37%-6.37%-0.25%
Dividend Yield--3.41%4.08%6.51%3.96%3.90%3.78%4.27%4.55%4.59%5.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,410.94
(-) Cash Dividends Paid (M)1,029.09
(=) Cash Retained (M)381.84
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)282.19176.37105.82
Cash Retained (M)381.84381.84381.84
(-) Cash Required (M)-282.19-176.37-105.82
(=) Excess Retained (M)99.66205.48276.02
(/) Shares Outstanding (M)3,141.813,141.813,141.81
(=) Excess Retained per Share0.030.070.09
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share0.030.070.09
(=) Adjusted Dividend0.360.390.42
WACC / Discount Rate7.28%7.28%7.28%
Growth Rate3.60%4.60%5.60%
Fair Value$10.12$15.36$26.17
Upside / Downside29.96%97.14%235.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,410.941,475.831,543.701,614.701,688.961,766.631,819.63
Payout Ratio72.94%76.35%79.76%83.17%86.59%90.00%92.50%
Projected Dividends (M)1,029.091,126.791,231.291,343.021,462.421,589.971,683.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.28%7.28%7.28%
Growth Rate3.60%4.60%5.60%
Year 1 PV (M)1,040.321,050.371,060.41
Year 2 PV (M)1,049.581,069.941,090.49
Year 3 PV (M)1,056.971,087.881,119.38
Year 4 PV (M)1,062.631,104.261,147.10
Year 5 PV (M)1,066.661,119.141,173.67
PV of Terminal Value (M)26,410.1527,709.6329,059.76
Equity Value (M)31,686.3233,141.2134,650.81
Shares Outstanding (M)3,141.813,141.813,141.81
Fair Value$10.09$10.55$11.03
Upside / Downside29.47%35.41%41.58%

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