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DNB Bank ASA (0O84.L)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,739.34 - $6,201.62$5,662.84
Multi-Stage$803.29 - $878.14$840.03
Blended Fair Value$3,251.44
Current Price$187.15
Upside1,637.34%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.94%19.45%17.4813.8010.8618.741.069.518.296.725.274.21
YoY Growth--26.67%27.02%-42.04%1,668.19%-88.85%14.71%23.32%27.56%25.26%42.43%
Dividend Yield--9.34%7.37%5.81%9.14%0.55%4.95%4.31%3.50%2.74%2.19%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46,422.00
(-) Cash Dividends Paid (M)25,981.00
(=) Cash Retained (M)20,441.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9,284.405,802.753,481.65
Cash Retained (M)20,441.0020,441.0020,441.00
(-) Cash Required (M)-9,284.40-5,802.75-3,481.65
(=) Excess Retained (M)11,156.6014,638.2516,959.35
(/) Shares Outstanding (M)1,488.671,488.671,488.67
(=) Excess Retained per Share7.499.8311.39
LTM Dividend per Share17.4517.4517.45
(+) Excess Retained per Share7.499.8311.39
(=) Adjusted Dividend24.9527.2928.84
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate5.50%6.50%7.50%
Fair Value$1,739.34$5,662.84$6,201.62
Upside / Downside829.38%2,925.83%3,213.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46,422.0049,439.4352,652.9956,075.4459,720.3463,602.1665,510.23
Payout Ratio55.97%62.77%69.58%76.39%83.19%90.00%92.50%
Projected Dividends (M)25,981.0031,034.9136,636.0642,834.2349,683.3857,241.9560,596.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)28,728.7129,001.0229,273.33
Year 2 PV (M)31,393.5331,991.4832,595.08
Year 3 PV (M)33,977.2434,952.6035,946.45
Year 4 PV (M)36,481.6037,884.5839,327.64
Year 5 PV (M)38,908.3540,787.6442,738.85
PV of Terminal Value (M)1,026,345.081,075,917.931,127,388.05
Equity Value (M)1,195,834.511,250,535.261,307,269.42
Shares Outstanding (M)1,488.671,488.671,488.67
Fair Value$803.29$840.03$878.14
Upside / Downside329.22%348.86%369.22%

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