Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Nedbank Group Limited (NED.JO)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$168.41 - $211.18$191.74
Multi-Stage$165.53 - $176.34$170.86
Blended Fair Value$181.30
Current Price$243.04
Upside-25.40%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.51%7.72%20.3817.9716.334.547.3014.8714.0712.6811.6611.26
YoY Growth--13.37%10.08%259.32%-37.77%-50.88%5.66%10.92%8.82%3.56%16.20%
Dividend Yield--7.23%8.40%7.68%2.60%5.64%6.94%5.12%4.95%4.89%5.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)32,358.00
(-) Cash Dividends Paid (M)19,482.00
(=) Cash Retained (M)12,876.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6,471.604,044.752,426.85
Cash Retained (M)12,876.0012,876.0012,876.00
(-) Cash Required (M)-6,471.60-4,044.75-2,426.85
(=) Excess Retained (M)6,404.408,831.2510,449.15
(/) Shares Outstanding (M)479.32479.32479.32
(=) Excess Retained per Share13.3618.4221.80
LTM Dividend per Share40.6540.6540.65
(+) Excess Retained per Share13.3618.4221.80
(=) Adjusted Dividend54.0159.0762.44
WACC / Discount Rate36.96%36.96%36.96%
Growth Rate3.70%4.70%5.70%
Fair Value$168.41$191.74$211.18
Upside / Downside-30.71%-21.11%-13.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)32,358.0033,879.7035,472.9637,141.1538,887.7940,716.5641,938.06
Payout Ratio60.21%66.17%72.12%78.08%84.04%90.00%92.50%
Projected Dividends (M)19,482.0022,416.8925,584.7329,000.9532,681.8936,644.9138,792.71

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate36.96%36.96%36.96%
Growth Rate3.70%4.70%5.70%
Year 1 PV (M)16,211.3016,367.6316,523.95
Year 2 PV (M)13,380.3013,639.6013,901.38
Year 3 PV (M)10,968.3111,288.6811,615.23
Year 4 PV (M)8,938.769,288.569,648.53
Year 5 PV (M)7,248.137,604.407,974.55
PV of Terminal Value (M)22,594.9523,705.5724,859.44
Equity Value (M)79,341.7581,894.4484,523.09
Shares Outstanding (M)479.32479.32479.32
Fair Value$165.53$170.86$176.34
Upside / Downside-31.89%-29.70%-27.44%

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