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Investment AB Öresund (publ) (0RGB.L)

Company Dividend Discount ModelIndustry: Financial - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$64.62 - $94.74$79.12
Multi-Stage$158.24 - $174.00$165.96
Blended Fair Value$122.54
Current Price$117.60
Upside4.20%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.94%0.00%7.036.836.536.036.035.530.004.774.523.77
YoY Growth--2.94%4.62%8.33%0.00%9.09%0.00%-100.00%5.56%20.00%0.00%
Dividend Yield--6.13%5.93%5.52%4.68%4.33%5.12%0.00%3.74%3.01%3.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)388.10
(-) Cash Dividends Paid (M)322.71
(=) Cash Retained (M)65.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)77.6248.5129.11
Cash Retained (M)65.4065.4065.40
(-) Cash Required (M)-77.62-48.51-29.11
(=) Excess Retained (M)-12.2316.8836.29
(/) Shares Outstanding (M)45.2345.2345.23
(=) Excess Retained per Share-0.270.370.80
LTM Dividend per Share7.137.137.13
(+) Excess Retained per Share-0.270.370.80
(=) Adjusted Dividend6.867.517.94
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate-3.47%-2.47%-1.47%
Fair Value$64.62$79.12$94.74
Upside / Downside-45.05%-32.72%-19.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)388.10378.52369.17360.05351.16342.49352.76
Payout Ratio83.15%84.52%85.89%87.26%88.63%90.00%92.50%
Projected Dividends (M)322.71319.92317.08314.18311.23308.24326.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate-3.47%-2.47%-1.47%
Year 1 PV (M)296.52299.60302.67
Year 2 PV (M)272.40278.07283.80
Year 3 PV (M)250.17258.02266.04
Year 4 PV (M)229.70239.36249.33
Year 5 PV (M)210.85222.00233.62
PV of Terminal Value (M)5,898.336,210.246,535.21
Equity Value (M)7,157.967,507.297,870.67
Shares Outstanding (M)45.2345.2345.23
Fair Value$158.24$165.96$174.00
Upside / Downside34.56%41.13%47.96%

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