Definitive Analysis
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Definitive Analysis

Financial Statements

Periods / Units / Analysis

Ticker

Industry

Sector

Tower Limited (TWR.AX)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$18.00 - $68.53$52.16
Multi-Stage$8.63 - $9.45$9.03
Blended Fair Value$30.60
Current Price$1.73
Upside1,668.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%5.67%0.140.030.040.050.030.000.000.000.000.07
YoY Growth--358.14%-25.18%-24.03%90.00%0.00%0.00%0.00%-100.00%-98.09%-10.05%
Dividend Yield--8.13%2.29%6.60%9.01%4.28%0.00%0.00%0.00%0.21%9.96%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)127.90
(-) Cash Dividends Paid (M)24.68
(=) Cash Retained (M)103.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)25.5815.999.59
Cash Retained (M)103.22103.22103.22
(-) Cash Required (M)-25.58-15.99-9.59
(=) Excess Retained (M)77.6487.2393.62
(/) Shares Outstanding (M)370.73370.73370.73
(=) Excess Retained per Share0.210.240.25
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.210.240.25
(=) Adjusted Dividend0.280.300.32
WACC / Discount Rate7.00%7.00%7.00%
Growth Rate5.38%6.38%7.38%
Fair Value$18.00$52.16$68.53
Upside / Downside940.59%2,915.30%3,861.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)127.90136.06144.74153.98163.80174.26179.48
Payout Ratio19.30%33.44%47.58%61.72%75.86%90.00%92.50%
Projected Dividends (M)24.6845.5068.8795.03124.26156.83166.02

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.00%7.00%7.00%
Growth Rate5.38%6.38%7.38%
Year 1 PV (M)42.1242.5242.92
Year 2 PV (M)59.0360.1561.29
Year 3 PV (M)75.4277.5879.79
Year 4 PV (M)91.2994.8198.43
Year 5 PV (M)106.68111.84117.19
PV of Terminal Value (M)2,825.512,962.143,104.01
Equity Value (M)3,200.053,349.053,503.63
Shares Outstanding (M)370.73370.73370.73
Fair Value$8.63$9.03$9.45
Upside / Downside398.95%422.18%446.28%

High-Yield Dividend Screener

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