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Mashreqbank PSC (MASQ.AE)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$2,226.17 - $8,031.86$7,085.54
Multi-Stage$1,032.83 - $1,129.20$1,080.14
Blended Fair Value$4,082.84
Current Price$240.00
Upside1,601.18%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS39.44%0.00%18.479.071.150.163.503.503.593.593.590.00
YoY Growth--103.65%687.56%611.15%-95.38%0.00%-2.29%-0.12%0.12%0.00%0.00%
Dividend Yield--8.00%5.24%0.96%0.21%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8,185.37
(-) Cash Dividends Paid (M)4,297.97
(=) Cash Retained (M)3,887.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,637.071,023.17613.90
Cash Retained (M)3,887.403,887.403,887.40
(-) Cash Required (M)-1,637.07-1,023.17-613.90
(=) Excess Retained (M)2,250.332,864.233,273.50
(/) Shares Outstanding (M)202.68202.68202.68
(=) Excess Retained per Share11.1014.1316.15
LTM Dividend per Share21.2121.2121.21
(+) Excess Retained per Share11.1014.1316.15
(=) Adjusted Dividend32.3135.3437.36
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$2,226.17$7,085.54$8,031.86
Upside / Downside827.57%2,852.31%3,246.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8,185.378,717.429,284.059,887.5110,530.2011,214.6611,551.10
Payout Ratio52.51%60.01%67.50%75.00%82.50%90.00%92.50%
Projected Dividends (M)4,297.975,231.006,267.177,415.958,687.5810,093.2010,684.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)4,841.474,887.364,933.25
Year 2 PV (M)5,368.555,470.815,574.03
Year 3 PV (M)5,879.566,048.346,220.32
Year 4 PV (M)6,374.846,620.006,872.16
Year 5 PV (M)6,854.767,185.847,529.60
PV of Terminal Value (M)180,011.00188,705.60197,732.96
Equity Value (M)209,330.18218,917.95228,862.32
Shares Outstanding (M)202.68202.68202.68
Fair Value$1,032.83$1,080.14$1,129.20
Upside / Downside330.35%350.06%370.50%

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