Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

AUO Corporation (2409.TW)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$35.01 - $146.21$88.70
Multi-Stage$17.62 - $19.27$18.43
Blended Fair Value$53.57
Current Price$13.65
Upside292.43%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.48%16.94%0.910.811.260.380.000.631.900.710.440.63
YoY Growth--12.50%-35.94%235.88%0.00%-100.00%-66.67%167.86%60.00%-30.00%233.33%
Dividend Yield--6.76%4.44%6.86%1.51%0.00%8.00%13.46%4.16%3.00%5.24%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,580.68
(-) Cash Dividends Paid (M)2,300.36
(=) Cash Retained (M)3,280.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,116.14697.58418.55
Cash Retained (M)3,280.313,280.313,280.31
(-) Cash Required (M)-1,116.14-697.58-418.55
(=) Excess Retained (M)2,164.182,582.732,861.76
(/) Shares Outstanding (M)7,589.407,589.407,589.40
(=) Excess Retained per Share0.290.340.38
LTM Dividend per Share0.300.300.30
(+) Excess Retained per Share0.290.340.38
(=) Adjusted Dividend0.590.640.68
WACC / Discount Rate7.25%7.25%7.25%
Growth Rate5.48%6.48%7.48%
Fair Value$35.01$88.70$146.21
Upside / Downside156.48%549.83%971.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,580.685,942.156,327.036,736.847,173.207,637.827,866.95
Payout Ratio41.22%50.98%60.73%70.49%80.24%90.00%92.50%
Projected Dividends (M)2,300.363,029.083,842.544,748.675,756.066,874.047,276.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.25%7.25%7.25%
Growth Rate5.48%6.48%7.48%
Year 1 PV (M)2,797.802,824.332,850.85
Year 2 PV (M)3,278.173,340.623,403.67
Year 3 PV (M)3,741.903,849.343,958.81
Year 4 PV (M)4,189.404,350.554,516.30
Year 5 PV (M)4,621.104,844.345,076.14
PV of Terminal Value (M)115,117.48120,678.92126,453.26
Equity Value (M)133,745.84139,888.10146,259.03
Shares Outstanding (M)7,589.407,589.407,589.40
Fair Value$17.62$18.43$19.27
Upside / Downside29.10%35.03%41.18%

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