Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sequoia Economic Infrastructure Income Fund Limited (SEQI.L)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$1.49 - $2.26$1.86
Multi-Stage$3.17 - $3.48$3.32
Blended Fair Value$2.59
Current Price$0.78
Upside232.23%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020201920182017
DPS6.67%0.00%0.090.090.090.090.080.060.050.030.020.00
YoY Growth---5.86%2.98%6.42%5.51%26.88%42.59%30.01%75.22%0.00%0.00%
Dividend Yield--11.34%11.59%11.40%8.36%7.85%6.84%4.03%3.30%1.83%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)212.47
(-) Cash Dividends Paid (M)168.38
(=) Cash Retained (M)44.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)42.4926.5615.94
Cash Retained (M)44.0944.0944.09
(-) Cash Required (M)-42.49-26.56-15.94
(=) Excess Retained (M)1.5917.5328.15
(/) Shares Outstanding (M)1,227.571,227.571,227.57
(=) Excess Retained per Share0.000.010.02
LTM Dividend per Share0.140.140.14
(+) Excess Retained per Share0.000.010.02
(=) Adjusted Dividend0.140.150.16
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.49$1.86$2.26
Upside / Downside91.90%138.28%190.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)212.47210.34208.24206.16204.10202.06208.12
Payout Ratio79.25%81.40%83.55%85.70%87.85%90.00%92.50%
Projected Dividends (M)168.38171.22173.98176.68179.30181.85192.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.08%7.08%7.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)158.29159.90161.52
Year 2 PV (M)148.70151.75154.83
Year 3 PV (M)139.59143.91148.31
Year 4 PV (M)130.96136.39141.99
Year 5 PV (M)122.80129.19135.85
PV of Terminal Value (M)3,188.263,354.283,527.15
Equity Value (M)3,888.604,075.424,269.64
Shares Outstanding (M)1,227.571,227.571,227.57
Fair Value$3.17$3.32$3.48
Upside / Downside306.64%326.18%346.49%

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