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$31,166.82 - $36,740.81$34,421.77
Multi-Stage$18,916.65 - $20,817.96$19,849.02
Blended Fair Value$27,135.39
Current Price$3,111.00
Upside772.24%
DecisionBuy

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 Rate2.16%2.16%2.16%
Growth Rate2.35%3.35%4.35%
Fair Value$31,166.82$34,421.77$36,740.81
Upside / Downside901.83%1,006.45%1,081.00%

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 Rate2.16%2.16%2.16%
Growth Rate2.35%3.35%4.35%
Year 1 PV (M)154,489.08155,998.47157,507.87
Year 2 PV (M)205,230.59209,260.49213,329.57
Year 3 PV (M)256,157.05263,738.80271,468.70
Year 4 PV (M)307,268.96319,454.48331,998.88
Year 5 PV (M)358,566.84376,428.91394,995.84
PV of Terminal Value (M)37,958,283.6739,849,182.6841,814,698.33
Equity Value (M)39,239,996.1941,174,063.8243,183,999.18
Shares Outstanding (M)2,074.362,074.362,074.36
Fair Value$18,916.65$19,849.02$20,817.96
Upside / Downside508.06%538.03%569.17%

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