Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Far Eastern International Bank Ltd. (2845.TW)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$30.50 - $172.16$57.81
Multi-Stage$20.09 - $21.96$21.01
Blended Fair Value$39.41
Current Price$12.11
Upside225.43%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.96%11.69%0.470.380.350.260.360.340.320.300.280.26
YoY Growth--23.75%10.13%34.42%-28.43%6.76%5.28%6.93%7.70%5.99%67.90%
Dividend Yield--3.77%2.98%3.51%2.47%4.01%4.10%3.59%3.94%3.84%3.70%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,777.88
(-) Cash Dividends Paid (M)2,059.16
(=) Cash Retained (M)1,718.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)755.58472.23283.34
Cash Retained (M)1,718.721,718.721,718.72
(-) Cash Required (M)-755.58-472.23-283.34
(=) Excess Retained (M)963.141,246.481,435.38
(/) Shares Outstanding (M)4,341.994,341.994,341.99
(=) Excess Retained per Share0.220.290.33
LTM Dividend per Share0.470.470.47
(+) Excess Retained per Share0.220.290.33
(=) Adjusted Dividend0.700.760.80
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate4.96%5.96%6.96%
Fair Value$30.50$57.81$172.16
Upside / Downside151.86%377.40%1,321.65%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,777.884,002.914,241.354,493.994,761.675,045.315,196.67
Payout Ratio54.51%61.60%68.70%75.80%82.90%90.00%92.50%
Projected Dividends (M)2,059.162,465.982,913.953,406.543,947.484,540.784,806.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.35%7.35%7.35%
Growth Rate4.96%5.96%6.96%
Year 1 PV (M)2,275.422,297.102,318.77
Year 2 PV (M)2,481.002,528.502,576.45
Year 3 PV (M)2,676.272,753.502,832.20
Year 4 PV (M)2,861.602,972.223,086.03
Year 5 PV (M)3,037.323,184.803,337.95
PV of Terminal Value (M)73,883.5477,470.9781,196.42
Equity Value (M)87,215.1491,207.0995,347.82
Shares Outstanding (M)4,341.994,341.994,341.99
Fair Value$20.09$21.01$21.96
Upside / Downside65.87%73.46%81.33%

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