Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Henderson Far East Income Limited (HFEL.L)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$4.51 - $6.87$5.62
Multi-Stage$9.80 - $10.77$10.27
Blended Fair Value$7.95
Current Price$2.31
Upside243.95%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.17%7.35%0.260.240.230.220.210.190.170.160.140.14
YoY Growth--6.95%4.13%6.32%5.95%7.55%12.68%8.09%8.73%5.73%7.58%
Dividend Yield--11.14%10.60%10.60%7.73%6.79%6.29%4.69%4.39%3.79%3.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)84.44
(-) Cash Dividends Paid (M)60.58
(=) Cash Retained (M)23.86
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.8910.566.33
Cash Retained (M)23.8623.8623.86
(-) Cash Required (M)-16.89-10.56-6.33
(=) Excess Retained (M)6.9713.3017.53
(/) Shares Outstanding (M)165.95165.95165.95
(=) Excess Retained per Share0.040.080.11
LTM Dividend per Share0.370.370.37
(+) Excess Retained per Share0.040.080.11
(=) Adjusted Dividend0.410.450.47
WACC / Discount Rate6.85%6.85%6.85%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.51$5.62$6.87
Upside / Downside95.17%143.12%197.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)84.4483.6082.7681.9381.1180.3082.71
Payout Ratio71.74%75.40%79.05%82.70%86.35%90.00%92.50%
Projected Dividends (M)60.5863.0365.4267.7670.0472.2776.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.85%6.85%6.85%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)58.3958.9959.58
Year 2 PV (M)56.1557.3058.47
Year 3 PV (M)53.8855.5557.25
Year 4 PV (M)51.6053.7455.94
Year 5 PV (M)49.3351.9054.57
PV of Terminal Value (M)1,356.971,427.631,501.20
Equity Value (M)1,626.321,705.101,787.01
Shares Outstanding (M)165.95165.95165.95
Fair Value$9.80$10.27$10.77
Upside / Downside324.23%344.78%366.15%

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