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Singapore Telecommunications Limited (Z74.SI)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$3.10 - $4.67$3.84
Multi-Stage$7.36 - $8.09$7.72
Blended Fair Value$5.78
Current Price$4.13
Upside39.94%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.58%0.36%0.170.110.100.070.080.170.170.200.170.17
YoY Growth--57.06%11.46%39.12%-10.51%-55.44%0.00%-14.63%18.85%0.94%4.17%
Dividend Yield--4.71%4.20%3.89%2.61%3.15%6.79%5.66%6.00%4.34%4.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,079.60
(-) Cash Dividends Paid (M)5,333.30
(=) Cash Retained (M)746.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,215.92759.95455.97
Cash Retained (M)746.30746.30746.30
(-) Cash Required (M)-1,215.92-759.95-455.97
(=) Excess Retained (M)-469.62-13.65290.33
(/) Shares Outstanding (M)16,557.9316,557.9316,557.93
(=) Excess Retained per Share-0.030.000.02
LTM Dividend per Share0.320.320.32
(+) Excess Retained per Share-0.030.000.02
(=) Adjusted Dividend0.290.320.34
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-2.58%-1.58%-0.58%
Fair Value$3.10$3.84$4.67
Upside / Downside-24.93%-6.97%13.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,079.605,983.285,888.485,795.185,703.365,613.005,781.39
Payout Ratio87.72%88.18%88.63%89.09%89.54%90.00%92.50%
Projected Dividends (M)5,333.305,276.035,219.245,162.925,107.075,051.705,347.79

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-2.58%-1.58%-0.58%
Year 1 PV (M)4,897.034,947.304,997.57
Year 2 PV (M)4,496.334,589.114,682.85
Year 3 PV (M)4,128.304,256.754,387.83
Year 4 PV (M)3,790.303,948.354,111.29
Year 5 PV (M)3,479.893,662.203,852.08
PV of Terminal Value (M)101,075.56106,371.02111,886.14
Equity Value (M)121,867.41127,774.74133,917.76
Shares Outstanding (M)16,557.9316,557.9316,557.93
Fair Value$7.36$7.72$8.09
Upside / Downside78.21%86.85%95.83%

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