Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ZF Steering Gear (India) Limited (ZFSTEERING.BO)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$1,915.24 - $2,256.47$2,114.65
Multi-Stage$1,569.20 - $1,722.19$1,644.27
Blended Fair Value$1,879.46
Current Price$1,016.95
Upside84.81%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS170.42%-0.23%7.755.090.000.090.090.059.409.360.0326.22
YoY Growth--52.21%0.00%-100.00%0.00%60.00%-99.43%0.44%34,828.00%-99.90%230.94%
Dividend Yield--0.66%0.44%0.00%0.02%0.02%0.02%1.87%0.89%0.00%1.71%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)105.90
(-) Cash Dividends Paid (M)35.80
(=) Cash Retained (M)70.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)21.1813.247.94
Cash Retained (M)70.1070.1070.10
(-) Cash Required (M)-21.18-13.24-7.94
(=) Excess Retained (M)48.9256.8662.16
(/) Shares Outstanding (M)9.339.339.33
(=) Excess Retained per Share5.246.096.66
LTM Dividend per Share3.843.843.84
(+) Excess Retained per Share5.246.096.66
(=) Adjusted Dividend9.089.9310.50
WACC / Discount Rate-1.46%-1.46%-1.46%
Growth Rate5.50%6.50%7.50%
Fair Value$1,915.24$2,114.65$2,256.47
Upside / Downside88.33%107.94%121.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)105.90112.78120.11127.92136.24145.09149.44
Payout Ratio33.81%45.04%56.28%67.52%78.76%90.00%92.50%
Projected Dividends (M)35.8050.8067.6086.38107.30130.58138.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-1.46%-1.46%-1.46%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)51.0751.5652.04
Year 2 PV (M)68.3369.6370.94
Year 3 PV (M)87.7690.2892.85
Year 4 PV (M)109.60113.82118.15
Year 5 PV (M)134.09140.57147.30
PV of Terminal Value (M)14,195.3314,880.9715,592.85
Equity Value (M)14,646.1915,346.8216,074.13
Shares Outstanding (M)9.339.339.33
Fair Value$1,569.20$1,644.27$1,722.19
Upside / Downside54.30%61.69%69.35%

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