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Definitive Analysis

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SHINSEGAE Information & Communication Co., Ltd. (035510.KS)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$223,787.31 - $697,978.15$654,107.74
Multi-Stage$92,058.33 - $100,824.05$96,360.46
Blended Fair Value$375,234.10
Current Price$14,160.00
Upside2,549.96%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.39%10.34%350.12500.17250.09221.55249.06186.80124.83130.00130.88130.88
YoY Growth---30.00%100.00%12.88%-11.05%33.33%49.64%-3.98%-0.67%0.00%0.00%
Dividend Yield--2.96%4.20%1.58%1.16%1.62%1.95%0.81%0.73%1.89%1.37%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46,120.96
(-) Cash Dividends Paid (M)5,652.70
(=) Cash Retained (M)40,468.26
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9,224.195,765.123,459.07
Cash Retained (M)40,468.2640,468.2640,468.26
(-) Cash Required (M)-9,224.19-5,765.12-3,459.07
(=) Excess Retained (M)31,244.0734,703.1437,009.19
(/) Shares Outstanding (M)13.1413.1413.14
(=) Excess Retained per Share2,377.562,640.782,816.26
LTM Dividend per Share430.15430.15430.15
(+) Excess Retained per Share2,377.562,640.782,816.26
(=) Adjusted Dividend2,807.713,070.933,246.41
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Fair Value$223,787.31$654,107.74$697,978.15
Upside / Downside1,480.42%4,519.40%4,829.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46,120.9649,118.8252,311.5455,711.7959,333.0663,189.7165,085.40
Payout Ratio12.26%27.80%43.35%58.90%74.45%90.00%92.50%
Projected Dividends (M)5,652.7013,657.4922,679.0132,815.6444,174.2056,870.7460,203.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.82%6.82%6.82%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)12,665.0312,785.0812,905.13
Year 2 PV (M)19,502.7219,874.1920,249.17
Year 3 PV (M)26,169.0126,920.2327,685.69
Year 4 PV (M)32,667.1133,923.3935,215.57
Year 5 PV (M)39,000.1640,883.8842,839.69
PV of Terminal Value (M)1,079,757.481,131,910.171,186,058.86
Equity Value (M)1,209,761.501,266,296.941,324,954.11
Shares Outstanding (M)13.1413.1413.14
Fair Value$92,058.33$96,360.46$100,824.05
Upside / Downside550.13%580.51%612.03%

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