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Brother Industries, Ltd. (6448.T)

Company Dividend Discount ModelIndustry: Business Equipment & SuppliesSector: Industrials

Valuation Snapshot

Stable Growth$10,515.56 - $42,363.00$27,979.03
Multi-Stage$6,471.76 - $7,087.76$6,774.05
Blended Fair Value$17,376.54
Current Price$2,478.50
Upside601.09%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS10.42%13.71%100.2768.1768.5264.1758.0361.0761.0648.8436.6233.57
YoY Growth--47.08%-0.51%6.79%10.57%-4.98%0.03%25.02%33.35%9.09%21.02%
Dividend Yield--4.03%2.35%3.26%2.69%2.62%3.14%2.92%2.23%1.41%3.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)54,902.00
(-) Cash Dividends Paid (M)25,625.00
(=) Cash Retained (M)29,277.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10,980.406,862.754,117.65
Cash Retained (M)29,277.0029,277.0029,277.00
(-) Cash Required (M)-10,980.40-6,862.75-4,117.65
(=) Excess Retained (M)18,296.6022,414.2525,159.35
(/) Shares Outstanding (M)255.54255.54255.54
(=) Excess Retained per Share71.6087.7198.45
LTM Dividend per Share100.28100.28100.28
(+) Excess Retained per Share71.6087.7198.45
(=) Adjusted Dividend171.87187.99198.73
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate4.58%5.58%6.58%
Fair Value$10,515.56$27,979.03$42,363.00
Upside / Downside324.27%1,028.87%1,609.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)54,902.0057,967.8561,204.9164,622.7368,231.4172,041.6074,202.85
Payout Ratio46.67%55.34%64.00%72.67%81.33%90.00%92.50%
Projected Dividends (M)25,625.0032,078.9839,173.8646,961.1055,495.8964,837.4468,637.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.29%6.29%6.29%
Growth Rate4.58%5.58%6.58%
Year 1 PV (M)29,893.7530,179.5930,465.42
Year 2 PV (M)34,018.5834,672.2435,332.12
Year 3 PV (M)38,003.0039,103.5740,225.19
Year 4 PV (M)41,850.4743,474.2245,144.76
Year 5 PV (M)45,564.3647,784.7850,090.93
PV of Terminal Value (M)1,464,489.711,535,856.341,609,978.48
Equity Value (M)1,653,819.881,731,070.741,811,236.90
Shares Outstanding (M)255.54255.54255.54
Fair Value$6,471.76$6,774.05$7,087.76
Upside / Downside161.12%173.31%185.97%

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