Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Seiko Epson Corporation (6724.T)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$2,041.64 - $3,501.37$2,672.56
Multi-Stage$2,093.84 - $2,285.80$2,188.07
Blended Fair Value$2,430.31
Current Price$1,898.00
Upside28.05%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS2.40%6.59%76.0180.6666.4766.9066.9067.5169.2165.9166.4378.11
YoY Growth---5.76%21.34%-0.64%0.01%-0.91%-2.45%5.00%-0.78%-14.95%94.44%
Dividend Yield--3.97%3.21%2.97%3.48%3.42%5.48%4.02%3.42%2.66%4.78%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)50,562.00
(-) Cash Dividends Paid (M)23,954.00
(=) Cash Retained (M)26,608.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10,112.406,320.253,792.15
Cash Retained (M)26,608.0026,608.0026,608.00
(-) Cash Required (M)-10,112.40-6,320.25-3,792.15
(=) Excess Retained (M)16,495.6020,287.7522,815.85
(/) Shares Outstanding (M)320.63320.63320.63
(=) Excess Retained per Share51.4563.2871.16
LTM Dividend per Share74.7174.7174.71
(+) Excess Retained per Share51.4563.2871.16
(=) Adjusted Dividend126.16137.99145.87
WACC / Discount Rate9.88%9.88%9.88%
Growth Rate3.48%4.48%5.48%
Fair Value$2,041.64$2,672.56$3,501.37
Upside / Downside7.57%40.81%84.48%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)50,562.0052,829.4755,198.6357,674.0360,260.4462,962.8464,851.72
Payout Ratio47.38%55.90%64.43%72.95%81.48%90.00%92.50%
Projected Dividends (M)23,954.0029,531.8835,561.8842,073.3249,097.2556,666.5559,987.84

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.88%9.88%9.88%
Growth Rate3.48%4.48%5.48%
Year 1 PV (M)26,619.4726,876.7027,133.93
Year 2 PV (M)28,893.5729,454.6830,021.19
Year 3 PV (M)30,812.8331,714.7532,634.10
Year 4 PV (M)32,410.8433,681.8934,989.97
Year 5 PV (M)33,718.4935,379.4437,105.21
PV of Terminal Value (M)518,885.77544,445.70571,003.10
Equity Value (M)671,340.98701,553.17732,887.50
Shares Outstanding (M)320.63320.63320.63
Fair Value$2,093.84$2,188.07$2,285.80
Upside / Downside10.32%15.28%20.43%

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