Definitive Analysis
Definitive Analysis

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Banco del Bajío, S.A., Institución de Banca Múltiple (BBAJIOO.MX)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$450.28 - $1,624.56$1,433.15
Multi-Stage$208.53 - $228.01$218.09
Blended Fair Value$825.62
Current Price$45.30
Upside1,722.57%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS26.62%30.77%5.555.427.791.900.001.710.650.370.390.39
YoY Growth--2.57%-30.47%309.73%0.00%-100.00%163.77%73.03%-3.68%-0.22%2.43%
Dividend Yield--12.46%8.46%11.88%3.48%0.00%8.33%1.69%0.97%1.29%1.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)9,720.10
(-) Cash Dividends Paid (M)4,875.88
(=) Cash Retained (M)4,844.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,944.021,215.01729.01
Cash Retained (M)4,844.224,844.224,844.22
(-) Cash Required (M)-1,944.02-1,215.01-729.01
(=) Excess Retained (M)2,900.203,629.214,115.21
(/) Shares Outstanding (M)1,189.911,189.911,189.91
(=) Excess Retained per Share2.443.053.46
LTM Dividend per Share4.104.104.10
(+) Excess Retained per Share2.443.053.46
(=) Adjusted Dividend6.537.157.56
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$450.28$1,433.15$1,624.56
Upside / Downside893.99%3,063.69%3,486.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9,720.1010,351.9111,024.7811,741.3912,504.5813,317.3813,716.90
Payout Ratio50.16%58.13%66.10%74.07%82.03%90.00%92.50%
Projected Dividends (M)4,875.886,017.607,287.138,696.2810,257.8311,985.6412,688.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,569.495,622.285,675.08
Year 2 PV (M)6,242.266,361.166,481.18
Year 3 PV (M)6,894.647,092.567,294.23
Year 4 PV (M)7,527.077,816.548,114.28
Year 5 PV (M)8,140.008,533.178,941.38
PV of Terminal Value (M)213,762.50224,087.31234,807.28
Equity Value (M)248,135.97259,513.02271,313.42
Shares Outstanding (M)1,189.911,189.911,189.91
Fair Value$208.53$218.09$228.01
Upside / Downside360.34%381.44%403.34%

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