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Kung Long Batteries Industrial Co.,Ltd (1537.TW)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$92.68 - $144.92$116.72
Multi-Stage$199.21 - $218.86$208.85
Blended Fair Value$162.78
Current Price$139.50
Upside16.69%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-6.84%2.49%6.979.956.969.949.939.939.448.947.456.44
YoY Growth---29.95%42.95%-29.96%0.06%0.00%5.26%5.56%20.00%15.67%18.18%
Dividend Yield--4.65%7.08%4.87%7.23%6.71%7.47%5.69%6.17%4.73%4.54%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)788.57
(-) Cash Dividends Paid (M)574.00
(=) Cash Retained (M)214.57
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)157.7198.5759.14
Cash Retained (M)214.57214.57214.57
(-) Cash Required (M)-157.71-98.57-59.14
(=) Excess Retained (M)56.85116.00155.42
(/) Shares Outstanding (M)82.3382.3382.33
(=) Excess Retained per Share0.691.411.89
LTM Dividend per Share6.976.976.97
(+) Excess Retained per Share0.691.411.89
(=) Adjusted Dividend7.668.388.86
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-1.49%-0.49%0.51%
Fair Value$92.68$116.72$144.92
Upside / Downside-33.57%-16.33%3.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)788.57784.70780.85777.02773.21769.42792.51
Payout Ratio72.79%76.23%79.67%83.12%86.56%90.00%92.50%
Projected Dividends (M)574.00598.20622.14645.83669.28692.48733.07

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.65%6.65%6.65%
Growth Rate-1.49%-0.49%0.51%
Year 1 PV (M)555.24560.87566.51
Year 2 PV (M)535.99546.93557.97
Year 3 PV (M)516.44532.33548.54
Year 4 PV (M)496.76517.24538.35
Year 5 PV (M)477.07501.78527.50
PV of Terminal Value (M)13,819.3314,535.1315,280.30
Equity Value (M)16,400.8217,194.2818,019.17
Shares Outstanding (M)82.3382.3382.33
Fair Value$199.21$208.85$218.86
Upside / Downside42.80%49.71%56.89%

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