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Sports Toto Berhad (1562.KL)

Company Dividend Discount ModelIndustry: Gambling, Resorts & CasinosSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$1.36 - $2.05$1.69
Multi-Stage$2.71 - $2.98$2.84
Blended Fair Value$2.27
Current Price$1.43
Upside58.47%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202520242023202220212020
DPS-6.39%0.00%0.090.060.100.040.070.130.000.000.000.00
YoY Growth--39.26%-31.92%171.79%-46.21%-48.13%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--6.33%4.04%6.58%2.05%0.00%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)217.78
(-) Cash Dividends Paid (M)107.22
(=) Cash Retained (M)110.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)43.5627.2216.33
Cash Retained (M)110.56110.56110.56
(-) Cash Required (M)-43.56-27.22-16.33
(=) Excess Retained (M)67.0183.3494.23
(/) Shares Outstanding (M)1,337.861,337.861,337.86
(=) Excess Retained per Share0.050.060.07
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share0.050.060.07
(=) Adjusted Dividend0.130.140.15
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.36$1.69$2.05
Upside / Downside-4.55%18.10%43.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)217.78215.60213.44211.31209.19207.10213.32
Payout Ratio49.23%57.39%65.54%73.69%81.85%90.00%92.50%
Projected Dividends (M)107.22123.72139.89155.72171.22186.39197.32

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)114.09115.25116.42
Year 2 PV (M)118.95121.39123.85
Year 3 PV (M)122.10125.87129.73
Year 4 PV (M)123.80128.93134.22
Year 5 PV (M)124.27130.75137.48
PV of Terminal Value (M)3,024.593,182.093,346.08
Equity Value (M)3,627.803,804.283,987.78
Shares Outstanding (M)1,337.861,337.861,337.86
Fair Value$2.71$2.84$2.98
Upside / Downside89.63%98.85%108.44%

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