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Taiwan Steel Union Co., Ltd (6581.TW)

Company Dividend Discount ModelIndustry: Waste ManagementSector: Industrials

Valuation Snapshot

Stable Growth$110.88 - $218.82$153.33
Multi-Stage$164.80 - $180.51$172.50
Blended Fair Value$162.92
Current Price$110.50
Upside47.44%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.89%0.00%4.286.483.992.992.594.965.333.041.342.69
YoY Growth---33.85%62.50%33.33%15.38%-47.79%-6.92%75.18%126.67%-50.00%0.00%
Dividend Yield--3.95%7.18%4.23%3.54%3.51%9.64%5.28%2.38%0.99%4.83%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)756.00
(-) Cash Dividends Paid (M)667.63
(=) Cash Retained (M)88.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)151.2094.5056.70
Cash Retained (M)88.3888.3888.38
(-) Cash Required (M)-151.20-94.50-56.70
(=) Excess Retained (M)-62.82-6.1231.68
(/) Shares Outstanding (M)111.67111.67111.67
(=) Excess Retained per Share-0.56-0.050.28
LTM Dividend per Share5.985.985.98
(+) Excess Retained per Share-0.56-0.050.28
(=) Adjusted Dividend5.425.926.26
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate1.70%2.70%3.70%
Fair Value$110.88$153.33$218.82
Upside / Downside0.34%38.76%98.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)756.00776.42797.38818.91841.03863.74889.65
Payout Ratio88.31%88.65%88.99%89.32%89.66%90.00%92.50%
Projected Dividends (M)667.63688.28709.56731.49754.08777.36822.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate1.70%2.70%3.70%
Year 1 PV (M)638.97645.25651.53
Year 2 PV (M)611.53623.62635.82
Year 3 PV (M)585.27602.70620.48
Year 4 PV (M)560.12582.48605.50
Year 5 PV (M)536.05562.93590.87
PV of Terminal Value (M)15,470.6216,246.3217,052.84
Equity Value (M)18,402.5719,263.3120,157.05
Shares Outstanding (M)111.67111.67111.67
Fair Value$164.80$172.50$180.51
Upside / Downside49.14%56.11%63.36%

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