Definitive Analysis
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EEKA Fashion Holdings Limited (3709.HK)

Company Dividend Discount ModelIndustry: Apparel - RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$68.80 - $333.81$147.68
Multi-Stage$37.96 - $41.46$39.68
Blended Fair Value$93.68
Current Price$7.22
Upside1,197.52%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS26.43%33.73%0.650.360.410.310.270.200.230.000.090.06
YoY Growth--77.72%-11.76%33.48%14.03%35.32%-12.19%0.00%-100.00%60.65%65.41%
Dividend Yield--7.97%2.83%4.17%2.85%2.25%2.47%2.65%0.00%1.24%0.66%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,149.01
(-) Cash Dividends Paid (M)671.18
(=) Cash Retained (M)477.83
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)229.80143.6386.18
Cash Retained (M)477.83477.83477.83
(-) Cash Required (M)-229.80-143.63-86.18
(=) Excess Retained (M)248.02334.20391.65
(/) Shares Outstanding (M)684.55684.55684.55
(=) Excess Retained per Share0.360.490.57
LTM Dividend per Share0.980.980.98
(+) Excess Retained per Share0.360.490.57
(=) Adjusted Dividend1.341.471.55
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate5.50%6.50%7.50%
Fair Value$68.80$147.68$333.81
Upside / Downside852.89%1,945.50%4,523.38%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,149.011,223.691,303.231,387.941,478.161,574.241,621.47
Payout Ratio58.41%64.73%71.05%77.37%83.68%90.00%92.50%
Projected Dividends (M)671.18792.11925.931,073.791,236.961,416.821,499.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)729.53736.44743.36
Year 2 PV (M)785.39800.35815.45
Year 3 PV (M)838.85862.93887.47
Year 4 PV (M)889.98924.21959.41
Year 5 PV (M)938.84984.191,031.27
PV of Terminal Value (M)21,799.6022,852.5323,945.76
Equity Value (M)25,982.2027,160.6628,382.72
Shares Outstanding (M)684.55684.55684.55
Fair Value$37.96$39.68$41.46
Upside / Downside425.69%449.54%474.26%

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