Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Mitsubishi Electric Corporation (6503.T)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$2,181.87 - $3,572.46$2,802.06
Multi-Stage$2,483.36 - $2,718.04$2,598.52
Blended Fair Value$2,700.29
Current Price$3,111.00
Upside-13.20%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.97%9.28%50.2946.7440.7541.3237.2641.4041.4033.1227.9427.94
YoY Growth--7.60%14.70%-1.40%10.92%-10.00%0.00%25.00%18.52%0.00%35.00%
Dividend Yield--1.62%1.83%2.01%2.85%2.31%2.96%2.80%2.25%1.73%2.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)394,787.00
(-) Cash Dividends Paid (M)103,932.00
(=) Cash Retained (M)290,855.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)78,957.4049,348.3829,609.03
Cash Retained (M)290,855.00290,855.00290,855.00
(-) Cash Required (M)-78,957.40-49,348.38-29,609.03
(=) Excess Retained (M)211,897.60241,506.63261,245.98
(/) Shares Outstanding (M)2,074.362,074.362,074.36
(=) Excess Retained per Share102.15116.42125.94
LTM Dividend per Share50.1050.1050.10
(+) Excess Retained per Share102.15116.42125.94
(=) Adjusted Dividend152.25166.53176.04
WACC / Discount Rate9.49%9.49%9.49%
Growth Rate2.35%3.35%4.35%
Fair Value$2,181.87$2,802.06$3,572.46
Upside / Downside-29.87%-9.93%14.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)394,787.00408,018.49421,693.45435,826.72450,433.68465,530.20479,496.11
Payout Ratio26.33%39.06%51.80%64.53%77.27%90.00%92.50%
Projected Dividends (M)103,932.00159,375.60218,418.89281,240.89348,028.57418,977.18443,533.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.49%9.49%9.49%
Growth Rate2.35%3.35%4.35%
Year 1 PV (M)144,148.40145,556.76146,965.13
Year 2 PV (M)178,675.99182,184.46185,727.05
Year 3 PV (M)208,085.81214,244.74220,524.02
Year 4 PV (M)232,898.61242,134.78251,642.98
Year 5 PV (M)253,588.97266,221.55279,352.63
PV of Terminal Value (M)4,133,991.114,339,926.654,553,988.60
Equity Value (M)5,151,388.885,390,268.955,638,200.40
Shares Outstanding (M)2,074.362,074.362,074.36
Fair Value$2,483.36$2,598.52$2,718.04
Upside / Downside-20.17%-16.47%-12.63%

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