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Høland og Setskog Sparebank (HSPG.OL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$892.09 - $1,388.29$1,121.26
Multi-Stage$1,679.76 - $1,849.89$1,763.16
Blended Fair Value$1,442.21
Current Price$169.98
Upside748.46%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.64%-2.29%7.007.007.007.005.008.007.505.005.0010.42
YoY Growth--0.00%0.00%0.00%39.97%-37.49%6.67%50.01%0.00%-52.03%18.09%
Dividend Yield--4.38%5.43%4.93%4.17%3.94%6.78%7.35%5.00%4.81%9.83%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)64.20
(-) Cash Dividends Paid (M)6.19
(=) Cash Retained (M)58.01
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.848.024.81
Cash Retained (M)58.0158.0158.01
(-) Cash Required (M)-12.84-8.02-4.81
(=) Excess Retained (M)45.1749.9853.19
(/) Shares Outstanding (M)0.690.690.69
(=) Excess Retained per Share65.6672.6677.32
LTM Dividend per Share9.009.009.00
(+) Excess Retained per Share65.6672.6677.32
(=) Adjusted Dividend74.6681.6686.32
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate-1.23%-0.23%0.77%
Fair Value$892.09$1,121.26$1,388.29
Upside / Downside424.82%559.64%716.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)64.2064.0563.9063.7563.6063.4565.35
Payout Ratio9.64%25.72%41.79%57.86%73.93%90.00%92.50%
Projected Dividends (M)6.1916.4726.7036.8847.0257.1060.45

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate-1.23%-0.23%0.77%
Year 1 PV (M)15.2315.3915.54
Year 2 PV (M)22.8423.3123.78
Year 3 PV (M)29.1930.0830.99
Year 4 PV (M)34.4135.8337.29
Year 5 PV (M)38.6640.6542.73
PV of Terminal Value (M)1,015.171,067.621,122.21
Equity Value (M)1,155.511,212.881,272.54
Shares Outstanding (M)0.690.690.69
Fair Value$1,679.76$1,763.16$1,849.89
Upside / Downside888.21%937.27%988.30%

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