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Itaúsa S.A. (ITSA3.SA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$31.70 - $78.94$47.52
Multi-Stage$34.52 - $37.76$36.11
Blended Fair Value$41.82
Current Price$11.47
Upside264.57%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-20.79%5.22%0.290.420.350.310.420.920.610.290.270.23
YoY Growth---31.13%18.44%15.47%-27.01%-54.63%51.58%108.28%10.00%13.95%34.73%
Dividend Yield--3.04%4.71%5.64%4.30%6.76%17.95%9.25%4.89%7.05%8.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)15,909.00
(-) Cash Dividends Paid (M)12,835.00
(=) Cash Retained (M)3,074.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3,181.801,988.631,193.18
Cash Retained (M)3,074.003,074.003,074.00
(-) Cash Required (M)-3,181.80-1,988.63-1,193.18
(=) Excess Retained (M)-107.801,085.381,880.83
(/) Shares Outstanding (M)10,916.0310,916.0310,916.03
(=) Excess Retained per Share-0.010.100.17
LTM Dividend per Share1.181.181.18
(+) Excess Retained per Share-0.010.100.17
(=) Adjusted Dividend1.171.281.35
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate3.22%4.22%5.22%
Fair Value$31.70$47.52$78.94
Upside / Downside176.34%314.30%588.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)15,909.0016,579.7917,278.8718,007.4218,766.6919,557.9820,144.72
Payout Ratio80.68%82.54%84.41%86.27%88.14%90.00%92.50%
Projected Dividends (M)12,835.0013,685.3114,584.5015,535.1916,540.1217,602.1818,633.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate3.22%4.22%5.22%
Year 1 PV (M)12,665.7212,788.4312,911.14
Year 2 PV (M)12,492.3012,735.5412,981.11
Year 3 PV (M)12,315.2412,676.6713,045.09
Year 4 PV (M)12,135.0212,612.1813,103.27
Year 5 PV (M)11,952.0912,542.4013,155.81
PV of Terminal Value (M)315,278.60330,850.11347,030.89
Equity Value (M)376,838.99394,205.33412,227.31
Shares Outstanding (M)10,916.0310,916.0310,916.03
Fair Value$34.52$36.11$37.76
Upside / Downside200.97%214.84%229.24%

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