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SpareBank 1 Sørøst-Norge (SB1NO.OL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$953.03 - $3,438.46$3,033.34
Multi-Stage$441.04 - $482.25$461.27
Blended Fair Value$1,747.30
Current Price$177.80
Upside882.73%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.48%17.09%5.284.774.095.860.003.072.901.361.021.36
YoY Growth--10.73%16.61%-30.23%0.00%-100.00%5.89%112.72%33.07%-25.00%25.18%
Dividend Yield--3.12%3.54%3.38%4.36%0.00%5.18%2.90%1.59%1.59%3.36%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,489.00
(-) Cash Dividends Paid (M)3,191.00
(=) Cash Retained (M)3,298.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,297.80811.13486.68
Cash Retained (M)3,298.003,298.003,298.00
(-) Cash Required (M)-1,297.80-811.13-486.68
(=) Excess Retained (M)2,000.202,486.882,811.33
(/) Shares Outstanding (M)375.31375.31375.31
(=) Excess Retained per Share5.336.637.49
LTM Dividend per Share8.508.508.50
(+) Excess Retained per Share5.336.637.49
(=) Adjusted Dividend13.8315.1315.99
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$953.03$3,033.34$3,438.46
Upside / Downside436.01%1,606.04%1,833.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,489.006,910.797,359.997,838.398,347.888,890.499,157.21
Payout Ratio49.18%57.34%65.51%73.67%81.84%90.00%92.50%
Projected Dividends (M)3,191.003,962.674,821.185,774.556,831.508,001.448,470.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)3,667.593,702.363,737.12
Year 2 PV (M)4,129.894,208.564,287.96
Year 3 PV (M)4,578.224,709.644,843.56
Year 4 PV (M)5,012.875,205.655,403.94
Year 5 PV (M)5,434.155,696.625,969.14
PV of Terminal Value (M)142,704.79149,597.48156,753.98
Equity Value (M)165,527.51173,120.31180,995.69
Shares Outstanding (M)375.31375.31375.31
Fair Value$441.04$461.27$482.25
Upside / Downside148.05%159.43%171.23%

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