Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MetLife, Inc. (0K0X.L)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$41.59 - $60.55$50.76
Multi-Stage$79.06 - $86.91$82.91
Blended Fair Value$66.84
Current Price$81.40
Upside-17.89%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.46%-0.60%2.242.302.612.702.722.672.672.672.702.59
YoY Growth---2.49%-12.17%-3.20%-0.91%2.09%0.11%-0.05%-1.03%3.96%9.13%
Dividend Yield--2.81%3.12%4.53%3.79%4.47%8.54%6.08%5.81%5.05%4.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,841.00
(-) Cash Dividends Paid (M)1,578.00
(=) Cash Retained (M)2,263.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)768.20480.13288.08
Cash Retained (M)2,263.002,263.002,263.00
(-) Cash Required (M)-768.20-480.13-288.08
(=) Excess Retained (M)1,494.801,782.881,974.93
(/) Shares Outstanding (M)682.25682.25682.25
(=) Excess Retained per Share2.192.612.89
LTM Dividend per Share2.312.312.31
(+) Excess Retained per Share2.192.612.89
(=) Adjusted Dividend4.504.935.21
WACC / Discount Rate7.95%7.95%7.95%
Growth Rate-2.60%-1.60%-0.60%
Fair Value$41.59$50.76$60.55
Upside / Downside-48.91%-37.64%-25.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,841.003,779.713,719.403,660.063,601.663,544.193,650.51
Payout Ratio41.08%50.87%60.65%70.43%80.22%90.00%92.50%
Projected Dividends (M)1,578.001,922.612,255.812,577.902,889.133,189.773,376.73

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.95%7.95%7.95%
Growth Rate-2.60%-1.60%-0.60%
Year 1 PV (M)1,762.861,780.961,799.06
Year 2 PV (M)1,896.521,935.661,975.20
Year 3 PV (M)1,987.232,049.062,112.17
Year 4 PV (M)2,042.102,127.262,215.06
Year 5 PV (M)2,067.272,175.592,288.40
PV of Terminal Value (M)44,179.8746,494.7748,905.71
Equity Value (M)53,935.8456,563.3059,295.59
Shares Outstanding (M)682.25682.25682.25
Fair Value$79.06$82.91$86.91
Upside / Downside-2.88%1.85%6.77%

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