Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Generation Development Group Limited (GDG.AX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.00 - $20.36$15.64
Multi-Stage$15.54 - $17.06$16.29
Blended Fair Value$15.97
Current Price$5.50
Upside190.28%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS29.45%16.48%0.040.010.010.010.010.010.010.010.010.01
YoY Growth--158.49%-1.01%7.87%14.37%15.15%0.48%0.73%20.06%0.00%4.08%
Dividend Yield--0.68%0.61%1.17%1.10%1.40%1.65%2.00%0.90%1.33%1.89%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)235.56
(-) Cash Dividends Paid (M)8.93
(=) Cash Retained (M)226.63
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)47.1129.4417.67
Cash Retained (M)226.63226.63226.63
(-) Cash Required (M)-47.11-29.44-17.67
(=) Excess Retained (M)179.52197.18208.96
(/) Shares Outstanding (M)243.05243.05243.05
(=) Excess Retained per Share0.740.810.86
LTM Dividend per Share0.040.040.04
(+) Excess Retained per Share0.740.810.86
(=) Adjusted Dividend0.780.850.90
WACC / Discount Rate8.04%8.04%8.04%
Growth Rate1.49%2.49%3.49%
Fair Value$12.00$15.64$20.36
Upside / Downside118.23%184.43%270.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)235.56241.42247.42253.58259.89266.35274.34
Payout Ratio3.79%21.03%38.27%55.52%72.76%90.00%92.50%
Projected Dividends (M)8.9350.7894.70140.78189.09239.72253.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.04%8.04%8.04%
Growth Rate1.49%2.49%3.49%
Year 1 PV (M)46.5446.9947.45
Year 2 PV (M)79.5581.1282.71
Year 3 PV (M)108.38111.62114.92
Year 4 PV (M)133.42138.76144.26
Year 5 PV (M)155.03162.82170.92
PV of Terminal Value (M)3,253.823,417.313,587.32
Equity Value (M)3,776.743,958.634,147.58
Shares Outstanding (M)243.05243.05243.05
Fair Value$15.54$16.29$17.06
Upside / Downside182.53%196.13%210.27%

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