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State Street Corporation (STT-PD)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$195.45 - $424.11$279.73
Multi-Stage$160.06 - $174.88$167.34
Blended Fair Value$223.53
Current Price$116.01
Upside92.68%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.12%6.72%3.543.323.332.583.053.192.842.632.482.24
YoY Growth--6.49%-0.21%29.26%-15.41%-4.41%12.32%7.81%6.22%10.38%21.52%
Dividend Yield--3.95%4.30%4.40%2.96%3.62%5.98%4.20%2.64%3.11%3.83%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,981.00
(-) Cash Dividends Paid (M)998.00
(=) Cash Retained (M)1,983.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)596.20372.63223.58
Cash Retained (M)1,983.001,983.001,983.00
(-) Cash Required (M)-596.20-372.63-223.58
(=) Excess Retained (M)1,386.801,610.381,759.43
(/) Shares Outstanding (M)291.95291.95291.95
(=) Excess Retained per Share4.755.526.03
LTM Dividend per Share3.423.423.42
(+) Excess Retained per Share4.755.526.03
(=) Adjusted Dividend8.178.939.44
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.72%5.72%6.72%
Fair Value$195.45$279.73$424.11
Upside / Downside68.48%141.12%265.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,981.003,151.553,331.863,522.493,724.023,937.084,055.20
Payout Ratio33.48%44.78%56.09%67.39%78.70%90.00%92.50%
Projected Dividends (M)998.001,411.361,868.752,373.862,930.653,543.383,751.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.72%5.72%6.72%
Year 1 PV (M)1,281.421,293.661,305.90
Year 2 PV (M)1,540.501,570.061,599.91
Year 3 PV (M)1,776.731,828.121,880.49
Year 4 PV (M)1,991.532,068.692,148.08
Year 5 PV (M)2,186.232,292.632,403.12
PV of Terminal Value (M)37,952.9039,799.9341,718.18
Equity Value (M)46,729.3148,853.0951,055.68
Shares Outstanding (M)291.95291.95291.95
Fair Value$160.06$167.34$174.88
Upside / Downside37.97%44.24%50.75%

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