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$1,056,428.95 - $5,530,123.60$2,122,982.94
Multi-Stage$1,827,453.50 - $2,010,713.37$1,917,321.97
Blended Fair Value$2,020,152.46
Current Price$90,300.00
Upside2,137.16%
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 Rate4.41%4.41%4.41%
Growth Rate2.19%3.19%4.19%
Fair Value$1,056,428.95$2,122,982.94$5,530,123.60
Upside / Downside1,069.91%2,251.03%6,024.17%

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 Rate4.41%4.41%4.41%
Growth Rate2.19%3.19%4.19%
Year 1 PV (M)107,998.52109,055.40110,112.28
Year 2 PV (M)149,904.55152,852.84155,829.84
Year 3 PV (M)189,979.47195,611.65201,354.07
Year 4 PV (M)228,282.21237,350.13246,685.56
Year 5 PV (M)264,870.03278,086.29291,824.93
PV of Terminal Value (M)19,930,768.4920,925,257.2321,959,053.39
Equity Value (M)20,871,803.2621,898,213.5422,964,860.05
Shares Outstanding (M)11.4211.4211.42
Fair Value$1,827,453.50$1,917,321.97$2,010,713.37
Upside / Downside1,923.76%2,023.28%2,126.70%

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