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United Corporations Limited (UNC.TO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$26.72 - $40.39$33.16
Multi-Stage$55.38 - $60.86$58.07
Blended Fair Value$45.61
Current Price$13.57
Upside236.15%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS48.91%26.75%1.810.150.610.250.250.250.220.250.230.20
YoY Growth--1,118.49%-75.59%145.11%-0.63%1.07%13.42%-14.46%8.79%18.02%17.30%
Dividend Yield--13.34%1.25%5.85%2.89%2.30%2.67%2.28%2.52%2.34%2.11%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)349.34
(-) Cash Dividends Paid (M)210.11
(=) Cash Retained (M)139.23
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)69.8743.6726.20
Cash Retained (M)139.23139.23139.23
(-) Cash Required (M)-69.87-43.67-26.20
(=) Excess Retained (M)69.3695.56113.03
(/) Shares Outstanding (M)112.52112.52112.52
(=) Excess Retained per Share0.620.851.00
LTM Dividend per Share1.871.871.87
(+) Excess Retained per Share0.620.851.00
(=) Adjusted Dividend2.482.722.87
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$26.72$33.16$40.39
Upside / Downside96.91%144.39%197.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)349.34345.85342.39338.97335.58332.22342.19
Payout Ratio60.14%66.12%72.09%78.06%84.03%90.00%92.50%
Projected Dividends (M)210.11228.66246.82264.59281.98299.00316.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.11%7.11%7.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)211.33213.48215.64
Year 2 PV (M)210.81215.14219.51
Year 3 PV (M)208.86215.32221.91
Year 4 PV (M)205.72214.24223.03
Year 5 PV (M)201.59212.09223.02
PV of Terminal Value (M)5,192.705,463.095,744.64
Equity Value (M)6,231.016,533.376,847.75
Shares Outstanding (M)112.52112.52112.52
Fair Value$55.38$58.07$60.86
Upside / Downside308.10%327.90%348.49%

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