Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Korea District Heating Corp. (071320.KS)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$792,305.46 - $2,879,233.73$1,321,447.09
Multi-Stage$1,184,230.64 - $1,302,075.29$1,242,025.09
Blended Fair Value$1,281,736.09
Current Price$90,300.00
Upside1,319.42%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-5.53%1,715.66940.35807.99978.31152.020.002,858.893,852.403,669.922,139.10
YoY Growth--82.45%16.38%-17.41%543.54%0.00%-100.00%-25.79%4.97%71.56%-29.43%
Dividend Yield--3.46%2.51%3.00%2.68%0.40%0.00%4.69%4.58%5.49%3.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)327,691.19
(-) Cash Dividends Paid (M)64,200.75
(=) Cash Retained (M)263,490.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)65,538.2440,961.4024,576.84
Cash Retained (M)263,490.44263,490.44263,490.44
(-) Cash Required (M)-65,538.24-40,961.40-24,576.84
(=) Excess Retained (M)197,952.20222,529.04238,913.60
(/) Shares Outstanding (M)11.4211.4211.42
(=) Excess Retained per Share17,331.9219,483.7720,918.34
LTM Dividend per Share5,621.175,621.175,621.17
(+) Excess Retained per Share17,331.9219,483.7720,918.34
(=) Adjusted Dividend22,953.0925,104.9426,539.51
WACC / Discount Rate5.15%5.15%5.15%
Growth Rate2.19%3.19%4.19%
Fair Value$792,305.46$1,321,447.09$2,879,233.73
Upside / Downside777.41%1,363.40%3,088.52%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)327,691.19338,133.49348,908.54360,026.96371,499.68383,337.99394,838.13
Payout Ratio19.59%33.67%47.76%61.84%75.92%90.00%92.50%
Projected Dividends (M)64,200.75113,861.30166,621.65222,628.93282,036.50345,004.19365,225.27

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.15%5.15%5.15%
Growth Rate2.19%3.19%4.19%
Year 1 PV (M)107,238.32108,287.76109,337.19
Year 2 PV (M)147,801.61150,708.54153,643.78
Year 3 PV (M)185,995.83191,509.91197,131.92
Year 4 PV (M)221,922.22230,737.51239,812.85
Year 5 PV (M)255,678.21268,435.83281,697.69
PV of Terminal Value (M)12,606,758.0613,235,799.4913,889,703.93
Equity Value (M)13,525,394.2514,185,479.0414,871,327.36
Shares Outstanding (M)11.4211.4211.42
Fair Value$1,184,230.64$1,242,025.09$1,302,075.29
Upside / Downside1,211.44%1,275.44%1,341.94%

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