Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Union Bank of Taiwan (2838.TW)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$68.46 - $247.82$216.56
Multi-Stage$31.43 - $34.39$32.88
Blended Fair Value$124.72
Current Price$17.95
Upside594.82%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS21.44%64.08%0.290.190.230.110.180.110.260.270.240.15
YoY Growth--51.02%-13.84%102.98%-37.54%60.09%-57.63%-3.37%12.50%63.53%7,010.49%
Dividend Yield--1.85%1.45%1.71%0.84%2.26%1.67%3.90%4.66%4.27%2.64%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,391.73
(-) Cash Dividends Paid (M)1,950.83
(=) Cash Retained (M)3,440.91
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,078.35673.97404.38
Cash Retained (M)3,440.913,440.913,440.91
(-) Cash Required (M)-1,078.35-673.97-404.38
(=) Excess Retained (M)2,362.562,766.943,036.53
(/) Shares Outstanding (M)4,326.874,326.874,326.87
(=) Excess Retained per Share0.550.640.70
LTM Dividend per Share0.450.450.45
(+) Excess Retained per Share0.550.640.70
(=) Adjusted Dividend1.001.091.15
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate5.50%6.50%7.50%
Fair Value$68.46$216.56$247.82
Upside / Downside281.40%1,106.46%1,280.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,391.735,742.206,115.446,512.946,936.287,387.147,608.76
Payout Ratio36.18%46.95%57.71%68.47%79.24%90.00%92.50%
Projected Dividends (M)1,950.832,695.703,529.164,459.595,496.066,648.437,038.10

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,494.842,518.492,542.14
Year 2 PV (M)3,022.853,080.423,138.54
Year 3 PV (M)3,535.183,636.663,740.07
Year 4 PV (M)4,032.184,187.254,346.74
Year 5 PV (M)4,514.194,732.234,958.61
PV of Terminal Value (M)118,397.46124,116.10130,053.60
Equity Value (M)135,996.69142,271.14148,779.70
Shares Outstanding (M)4,326.874,326.874,326.87
Fair Value$31.43$32.88$34.39
Upside / Downside75.10%83.18%91.56%

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