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StarHub Ltd (CC3.SI)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$0.90 - $1.24$1.07
Multi-Stage$2.63 - $2.90$2.77
Blended Fair Value$1.92
Current Price$1.16
Upside65.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-7.84%-9.75%0.070.050.060.050.050.110.160.170.200.20
YoY Growth--43.17%-22.02%28.09%5.23%-55.83%-32.79%-5.78%-15.11%0.09%0.20%
Dividend Yield--5.92%4.50%6.17%3.68%3.63%7.58%9.16%5.89%7.13%5.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)281.30
(-) Cash Dividends Paid (M)229.80
(=) Cash Retained (M)51.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)56.2635.1621.10
Cash Retained (M)51.5051.5051.50
(-) Cash Required (M)-56.26-35.16-21.10
(=) Excess Retained (M)-4.7616.3430.40
(/) Shares Outstanding (M)1,728.021,728.021,728.02
(=) Excess Retained per Share0.000.010.02
LTM Dividend per Share0.130.130.13
(+) Excess Retained per Share0.000.010.02
(=) Adjusted Dividend0.130.140.15
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-6.90%-5.90%-4.90%
Fair Value$0.90$1.07$1.24
Upside / Downside-22.80%-7.85%6.98%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)281.30264.72249.11234.42220.60207.60213.83
Payout Ratio81.69%83.35%85.02%86.68%88.34%90.00%92.50%
Projected Dividends (M)229.80220.65211.78203.19194.88186.84197.79

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.64%6.64%6.64%
Growth Rate-6.90%-5.90%-4.90%
Year 1 PV (M)204.70206.90209.10
Year 2 PV (M)182.28186.21190.19
Year 3 PV (M)162.24167.53172.93
Year 4 PV (M)144.36150.66157.17
Year 5 PV (M)128.40135.45142.80
PV of Terminal Value (M)3,729.513,934.154,147.67
Equity Value (M)4,551.504,780.905,019.85
Shares Outstanding (M)1,728.021,728.021,728.02
Fair Value$2.63$2.77$2.90
Upside / Downside127.06%138.51%150.43%

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