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Seaboard Corporation (SEB)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$6,545.96 - $12,502.95$8,940.64
Multi-Stage$5,996.28 - $6,567.02$6,276.37
Blended Fair Value$7,608.50
Current Price$3,747.42
Upside103.03%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS63.54%0.00%120.9310.3410.3410.3410.3410.347.237.230.000.00
YoY Growth--1,070.00%0.00%0.00%0.00%0.00%42.86%0.00%0.00%0.00%0.00%
Dividend Yield--4.46%0.32%0.27%0.24%0.27%0.36%0.17%0.17%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)398.00
(-) Cash Dividends Paid (M)20.00
(=) Cash Retained (M)378.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)79.6049.7529.85
Cash Retained (M)378.00378.00378.00
(-) Cash Required (M)-79.60-49.75-29.85
(=) Excess Retained (M)298.40328.25348.15
(/) Shares Outstanding (M)0.970.970.97
(=) Excess Retained per Share308.41339.26359.83
LTM Dividend per Share20.6720.6720.67
(+) Excess Retained per Share308.41339.26359.83
(=) Adjusted Dividend329.08359.93380.50
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.88%4.88%5.88%
Fair Value$6,545.96$8,940.64$12,502.95
Upside / Downside74.68%138.58%233.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)398.00417.41437.76459.10481.49504.97520.11
Payout Ratio5.03%22.02%39.02%56.01%73.01%90.00%92.50%
Projected Dividends (M)20.0091.91170.79257.14351.51454.47481.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.88%4.88%5.88%
Year 1 PV (M)83.4584.2585.05
Year 2 PV (M)140.77143.49146.24
Year 3 PV (M)192.42198.03203.75
Year 4 PV (M)238.80248.13257.73
Year 5 PV (M)280.29294.05308.34
PV of Terminal Value (M)4,865.915,104.685,352.74
Equity Value (M)5,801.646,072.636,353.84
Shares Outstanding (M)0.970.970.97
Fair Value$5,996.28$6,276.37$6,567.02
Upside / Downside60.01%67.49%75.24%

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