Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Inspur Electronic Information Industry Co., Ltd. (000977.SZ)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$40.26 - $109.37$62.01
Multi-Stage$27.22 - $29.75$28.47
Blended Fair Value$45.24
Current Price$74.42
Upside-39.22%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.23%16.81%0.410.480.520.110.200.230.250.120.080.09
YoY Growth---14.83%-7.99%376.08%-46.13%-11.42%-7.32%105.05%51.13%-10.19%2.98%
Dividend Yield--0.76%1.08%1.47%0.40%0.74%0.59%0.99%0.53%0.49%0.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,479.54
(-) Cash Dividends Paid (M)488.71
(=) Cash Retained (M)1,990.83
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)495.91309.94185.97
Cash Retained (M)1,990.831,990.831,990.83
(-) Cash Required (M)-495.91-309.94-185.97
(=) Excess Retained (M)1,494.921,680.891,804.86
(/) Shares Outstanding (M)1,472.141,472.141,472.14
(=) Excess Retained per Share1.021.141.23
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share1.021.141.23
(=) Adjusted Dividend1.351.471.56
WACC / Discount Rate9.03%9.03%9.03%
Growth Rate5.50%6.50%7.50%
Fair Value$40.26$62.01$109.37
Upside / Downside-45.91%-16.68%46.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,479.542,640.712,812.362,995.163,189.853,397.193,499.10
Payout Ratio19.71%33.77%47.83%61.88%75.94%90.00%92.50%
Projected Dividends (M)488.71891.711,345.041,853.522,422.433,057.473,236.67

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.03%9.03%9.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)810.17817.85825.53
Year 2 PV (M)1,110.291,131.441,152.79
Year 3 PV (M)1,390.121,430.031,470.69
Year 4 PV (M)1,650.661,714.141,779.43
Year 5 PV (M)1,892.861,984.292,079.21
PV of Terminal Value (M)33,223.1734,827.8736,493.97
Equity Value (M)40,077.2841,905.6143,801.62
Shares Outstanding (M)1,472.141,472.141,472.14
Fair Value$27.22$28.47$29.75
Upside / Downside-63.42%-61.75%-60.02%

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