Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Study King Co., Ltd. (6780.TWO)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$6.43 - $9.30$7.83
Multi-Stage$11.53 - $12.61$12.06
Blended Fair Value$9.94
Current Price$20.30
Upside-51.02%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.001.212.020.670.220.000.000.000.000.00
YoY Growth---100.00%-40.00%200.88%206.67%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%5.66%7.24%1.75%0.57%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)14.51
(-) Cash Dividends Paid (M)13.00
(=) Cash Retained (M)1.51
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.901.811.09
Cash Retained (M)1.511.511.51
(-) Cash Required (M)-2.90-1.81-1.09
(=) Excess Retained (M)-1.39-0.310.42
(/) Shares Outstanding (M)16.3116.3116.31
(=) Excess Retained per Share-0.09-0.020.03
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share-0.09-0.020.03
(=) Adjusted Dividend0.710.780.82
WACC / Discount Rate8.85%8.85%8.85%
Growth Rate-2.00%-1.00%0.00%
Fair Value$6.43$7.83$9.30
Upside / Downside-68.32%-61.44%-54.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)14.5114.3714.2214.0813.9413.8014.22
Payout Ratio89.60%89.68%89.76%89.84%89.92%90.00%92.50%
Projected Dividends (M)13.0012.8912.7712.6512.5412.4213.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.85%8.85%8.85%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)11.7211.8411.96
Year 2 PV (M)10.5610.7811.00
Year 3 PV (M)9.529.8110.11
Year 4 PV (M)8.588.939.30
Year 5 PV (M)7.738.138.55
PV of Terminal Value (M)139.93147.22154.81
Equity Value (M)188.03196.71205.72
Shares Outstanding (M)16.3116.3116.31
Fair Value$11.53$12.06$12.61
Upside / Downside-43.22%-40.60%-37.88%

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