Definitive Analysis
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Definitive Analysis

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Ticker

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Digia Oyj (0IKK.L)

Company Dividend Discount ModelIndustry: Software - ServicesSector: Technology

Valuation Snapshot

Stable Growth$18.47 - $89.59$39.66
Multi-Stage$10.03 - $10.96$10.49
Blended Fair Value$25.08
Current Price$7.38
Upside239.78%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS19.28%8.04%0.170.170.170.150.100.070.040.060.070.04
YoY Growth---0.31%0.83%11.89%49.78%43.35%74.37%-35.52%-10.62%78.54%-50.00%
Dividend Yield--2.55%3.29%2.98%1.98%1.34%1.74%1.55%2.86%2.53%1.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)11.93
(-) Cash Dividends Paid (M)4.77
(=) Cash Retained (M)7.17
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.391.490.89
Cash Retained (M)7.177.177.17
(-) Cash Required (M)-2.39-1.49-0.89
(=) Excess Retained (M)4.785.676.27
(/) Shares Outstanding (M)26.4826.4826.48
(=) Excess Retained per Share0.180.210.24
LTM Dividend per Share0.180.180.18
(+) Excess Retained per Share0.180.210.24
(=) Adjusted Dividend0.360.390.42
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate5.50%6.50%7.50%
Fair Value$18.47$39.66$89.59
Upside / Downside150.29%437.45%1,114.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)11.9312.7113.5314.4115.3516.3516.84
Payout Ratio39.95%49.96%59.97%69.98%79.99%90.00%92.50%
Projected Dividends (M)4.776.358.1210.0912.2814.7115.57

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.56%7.56%7.56%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5.855.905.96
Year 2 PV (M)6.887.017.15
Year 3 PV (M)7.888.118.34
Year 4 PV (M)8.839.179.52
Year 5 PV (M)9.7510.2210.71
PV of Terminal Value (M)226.40237.34248.69
Equity Value (M)265.59277.75290.36
Shares Outstanding (M)26.4826.4826.48
Fair Value$10.03$10.49$10.96
Upside / Downside35.89%42.11%48.56%

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