Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

PPB Group Berhad (4065.KL)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$7.85 - $13.90$10.41
Multi-Stage$10.61 - $11.61$11.10
Blended Fair Value$10.76
Current Price$10.20
Upside5.46%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.09%7.70%0.420.400.400.490.330.300.280.230.210.20
YoY Growth--5.00%0.70%-18.15%47.78%10.12%7.68%20.40%10.42%4.17%0.00%
Dividend Yield--3.65%2.53%2.40%2.84%1.78%1.82%1.51%1.44%1.49%1.44%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)821.31
(-) Cash Dividends Paid (M)597.49
(=) Cash Retained (M)223.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)164.26102.6661.60
Cash Retained (M)223.82223.82223.82
(-) Cash Required (M)-164.26-102.66-61.60
(=) Excess Retained (M)59.56121.16162.22
(/) Shares Outstanding (M)1,422.601,422.601,422.60
(=) Excess Retained per Share0.040.090.11
LTM Dividend per Share0.420.420.42
(+) Excess Retained per Share0.040.090.11
(=) Adjusted Dividend0.460.510.53
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate1.82%2.82%3.82%
Fair Value$7.85$10.41$13.90
Upside / Downside-23.00%2.10%36.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)821.31844.50868.34892.85918.06943.98972.30
Payout Ratio72.75%76.20%79.65%83.10%86.55%90.00%92.50%
Projected Dividends (M)597.49643.50691.63741.96794.58849.58899.37

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate1.82%2.82%3.82%
Year 1 PV (M)591.07596.88602.68
Year 2 PV (M)583.52595.04606.67
Year 3 PV (M)574.99592.09609.54
Year 4 PV (M)565.60588.15611.36
Year 5 PV (M)555.48583.30612.22
PV of Terminal Value (M)12,222.9612,835.0713,471.47
Equity Value (M)15,093.6215,790.5316,513.94
Shares Outstanding (M)1,422.601,422.601,422.60
Fair Value$10.61$11.10$11.61
Upside / Downside4.02%8.82%13.81%

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