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$4.25 - $6.38$5.26
Multi-Stage$8.60 - $9.44$9.02
Blended Fair Value$7.14
Current Price$2.31
Upside208.95%
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 Rate7.38%7.38%7.38%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.25$5.26$6.38
Upside / Downside84.06%127.63%175.99%

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 Rate7.38%7.38%7.38%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)58.1058.7059.29
Year 2 PV (M)55.5956.7357.89
Year 3 PV (M)53.0854.7256.40
Year 4 PV (M)50.5852.6854.84
Year 5 PV (M)48.1150.6253.23
PV of Terminal Value (M)1,162.201,222.711,285.73
Equity Value (M)1,427.661,496.161,567.36
Shares Outstanding (M)165.95165.95165.95
Fair Value$8.60$9.02$9.44
Upside / Downside272.41%290.28%308.85%

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