Definitive Analysis
Definitive Analysis

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Trøndelag Sparebank (TRSB.OL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$131.41 - $199.14$163.27
Multi-Stage$268.06 - $295.06$281.30
Blended Fair Value$222.29
Current Price$116.96
Upside90.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020
DPS0.00%0.00%3.271.421.552.250.000.000.000.000.000.00
YoY Growth--130.10%-8.22%-31.35%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.94%1.27%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)72.36
(-) Cash Dividends Paid (M)22.92
(=) Cash Retained (M)49.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.479.045.43
Cash Retained (M)49.4449.4449.44
(-) Cash Required (M)-14.47-9.04-5.43
(=) Excess Retained (M)34.9740.4044.01
(/) Shares Outstanding (M)4.784.784.78
(=) Excess Retained per Share7.328.459.21
LTM Dividend per Share4.794.794.79
(+) Excess Retained per Share7.328.459.21
(=) Adjusted Dividend12.1113.2514.00
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate-2.00%-1.00%0.00%
Fair Value$131.41$163.27$199.14
Upside / Downside12.35%39.60%70.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)72.3671.6470.9270.2169.5168.8170.88
Payout Ratio31.67%43.34%55.00%66.67%78.33%90.00%92.50%
Projected Dividends (M)22.9231.0539.0146.8154.4561.9365.56

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)28.7129.0129.30
Year 2 PV (M)33.3734.0534.74
Year 3 PV (M)37.0338.1839.34
Year 4 PV (M)39.8441.4943.19
Year 5 PV (M)41.9144.0946.36
PV of Terminal Value (M)1,100.491,157.791,217.46
Equity Value (M)1,281.351,344.611,410.40
Shares Outstanding (M)4.784.784.78
Fair Value$268.06$281.30$295.06
Upside / Downside129.19%140.51%152.28%

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