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Chia Chang Co., Ltd (4942.TW)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$16.37 - $22.70$19.55
Multi-Stage$47.09 - $51.97$49.48
Blended Fair Value$34.51
Current Price$36.30
Upside-4.92%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.65%2.78%2.292.482.982.482.482.481.191.491.251.59
YoY Growth---8.00%-16.67%20.00%0.00%0.00%108.33%-20.00%19.27%-21.63%-8.26%
Dividend Yield--5.66%5.47%7.83%5.19%5.89%8.51%3.00%6.45%4.82%7.06%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)424.02
(-) Cash Dividends Paid (M)284.74
(=) Cash Retained (M)139.29
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)84.8053.0031.80
Cash Retained (M)139.29139.29139.29
(-) Cash Required (M)-84.80-53.00-31.80
(=) Excess Retained (M)54.4886.28107.48
(/) Shares Outstanding (M)143.27143.27143.27
(=) Excess Retained per Share0.380.600.75
LTM Dividend per Share1.991.991.99
(+) Excess Retained per Share0.380.600.75
(=) Adjusted Dividend2.372.592.74
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate-6.81%-5.81%-4.81%
Fair Value$16.37$19.55$22.70
Upside / Downside-54.90%-46.15%-37.45%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)424.02399.40376.21354.36333.79314.41323.84
Payout Ratio67.15%71.72%76.29%80.86%85.43%90.00%92.50%
Projected Dividends (M)284.74286.45287.01286.54285.16282.97299.55

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.67%6.67%6.67%
Growth Rate-6.81%-5.81%-4.81%
Year 1 PV (M)265.69268.54271.39
Year 2 PV (M)246.91252.23257.62
Year 3 PV (M)228.63236.07243.67
Year 4 PV (M)211.03220.24229.74
Year 5 PV (M)194.23204.88215.98
PV of Terminal Value (M)5,600.025,906.996,227.28
Equity Value (M)6,746.517,088.947,445.67
Shares Outstanding (M)143.27143.27143.27
Fair Value$47.09$49.48$51.97
Upside / Downside29.72%36.30%43.16%

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