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Markel Corporation (0JYM.L)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$3,808.91 - $10,103.99$5,824.22
Multi-Stage$2,535.97 - $2,774.63$2,653.12
Blended Fair Value$4,238.67
Current Price$1,911.36
Upside121.76%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,079.38
(-) Cash Dividends Paid (M)18.00
(=) Cash Retained (M)2,061.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)415.88259.92155.95
Cash Retained (M)2,061.382,061.382,061.38
(-) Cash Required (M)-415.88-259.92-155.95
(=) Excess Retained (M)1,645.501,801.451,905.42
(/) Shares Outstanding (M)12.8112.8112.81
(=) Excess Retained per Share128.49140.67148.79
LTM Dividend per Share1.411.411.41
(+) Excess Retained per Share128.49140.67148.79
(=) Adjusted Dividend129.90142.08150.20
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$3,808.91$5,824.22$10,103.99
Upside / Downside99.28%204.72%428.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,079.382,214.542,358.482,511.782,675.052,848.932,934.39
Payout Ratio0.87%18.69%36.52%54.35%72.17%90.00%92.50%
Projected Dividends (M)18.00413.95861.301,365.061,930.672,564.032,714.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)375.87379.43382.99
Year 2 PV (M)710.11723.64737.29
Year 3 PV (M)1,021.901,051.241,081.13
Year 4 PV (M)1,312.351,362.821,414.74
Year 5 PV (M)1,582.541,658.971,738.34
PV of Terminal Value (M)27,472.8028,799.7530,177.48
Equity Value (M)32,475.5833,975.8535,531.97
Shares Outstanding (M)12.8112.8112.81
Fair Value$2,535.97$2,653.12$2,774.63
Upside / Downside32.68%38.81%45.17%

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