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BB Seguridade Participações S.A. (BBSE3.SA)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$333.46 - $921.93$863.98
Multi-Stage$134.13 - $146.50$140.20
Blended Fair Value$502.09
Current Price$33.26
Upside1,409.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.39%8.05%2.683.592.021.032.873.021.801.691.721.73
YoY Growth---25.39%77.32%97.21%-64.21%-5.08%68.13%6.09%-1.69%-0.59%40.37%
Dividend Yield--6.64%10.95%6.14%3.88%11.20%11.29%5.97%4.72%4.57%4.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8,998.88
(-) Cash Dividends Paid (M)8,273.74
(=) Cash Retained (M)725.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,799.781,124.86674.92
Cash Retained (M)725.14725.14725.14
(-) Cash Required (M)-1,799.78-1,124.86-674.92
(=) Excess Retained (M)-1,074.64-399.7250.22
(/) Shares Outstanding (M)1,941.201,941.201,941.20
(=) Excess Retained per Share-0.55-0.210.03
LTM Dividend per Share4.264.264.26
(+) Excess Retained per Share-0.55-0.210.03
(=) Adjusted Dividend3.714.064.29
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate5.50%6.50%7.50%
Fair Value$333.46$863.98$921.93
Upside / Downside902.57%2,497.66%2,671.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8,998.889,583.8110,206.7510,870.1911,576.7612,329.2512,699.12
Payout Ratio91.94%91.55%91.17%90.78%90.39%90.00%92.50%
Projected Dividends (M)8,273.748,774.319,305.009,867.6110,464.0411,096.3211,746.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)8,148.178,225.418,302.64
Year 2 PV (M)8,024.368,177.208,331.49
Year 3 PV (M)7,902.298,129.148,360.28
Year 4 PV (M)7,781.938,081.208,389.02
Year 5 PV (M)7,663.278,033.408,417.71
PV of Terminal Value (M)220,846.17231,513.12242,588.32
Equity Value (M)260,366.19272,159.47284,389.46
Shares Outstanding (M)1,941.201,941.201,941.20
Fair Value$134.13$140.20$146.50
Upside / Downside303.27%321.53%340.47%

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