Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Kakao Corp. (035720.KS)

Company Dividend Discount ModelIndustry: Internet Content & InformationSector: Communication Services

Valuation Snapshot

Stable Growth$6,286.04 - $10,683.60$8,198.05
Multi-Stage$5,013.22 - $5,466.78$5,235.94
Blended Fair Value$6,717.00
Current Price$60,000.00
Upside-88.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS33.50%0.00%98.94124.2052.32137.1723.7023.3327.4136.4125.8026.40
YoY Growth---20.34%137.39%-61.86%478.86%1.56%-14.87%-24.72%41.12%-2.27%0.00%
Dividend Yield--0.25%0.23%0.09%0.13%0.02%0.08%0.13%0.14%0.16%0.13%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)213,360.13
(-) Cash Dividends Paid (M)38,944.32
(=) Cash Retained (M)174,415.81
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)42,672.0326,670.0216,002.01
Cash Retained (M)174,415.81174,415.81174,415.81
(-) Cash Required (M)-42,672.03-26,670.02-16,002.01
(=) Excess Retained (M)131,743.79147,745.80158,413.80
(/) Shares Outstanding (M)439.42439.42439.42
(=) Excess Retained per Share299.81336.23360.50
LTM Dividend per Share88.6388.6388.63
(+) Excess Retained per Share299.81336.23360.50
(=) Adjusted Dividend388.44424.85449.13
WACC / Discount Rate12.02%12.02%12.02%
Growth Rate5.50%6.50%7.50%
Fair Value$6,286.04$8,198.05$10,683.60
Upside / Downside-89.52%-86.34%-82.19%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)213,360.13227,228.54241,998.39257,728.29274,480.63292,321.87301,091.52
Payout Ratio18.25%32.60%46.95%61.30%75.65%90.00%92.50%
Projected Dividends (M)38,944.3274,081.69113,622.39157,990.38207,646.16263,089.68278,509.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate12.02%12.02%12.02%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)65,512.0666,133.0266,753.99
Year 2 PV (M)88,855.5590,548.0092,256.41
Year 3 PV (M)109,260.10112,396.57115,592.49
Year 4 PV (M)126,988.73131,872.36136,895.51
Year 5 PV (M)142,283.78149,156.14156,291.52
PV of Terminal Value (M)1,670,025.091,750,687.931,834,437.92
Equity Value (M)2,202,925.312,300,794.022,402,227.85
Shares Outstanding (M)439.42439.42439.42
Fair Value$5,013.22$5,235.94$5,466.78
Upside / Downside-91.64%-91.27%-90.89%

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