Definitive Analysis
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SpareBank 1 SMN (MING.OL)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,732.33 - $6,250.11$5,513.72
Multi-Stage$797.45 - $872.20$834.14
Blended Fair Value$3,173.93
Current Price$193.94
Upside1,536.55%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS21.22%22.52%12.005.836.733.954.494.583.962.702.022.02
YoY Growth--105.95%-13.40%70.47%-12.06%-2.12%15.76%46.41%33.56%0.00%28.63%
Dividend Yield--6.56%4.22%5.44%2.79%4.18%6.78%4.47%3.37%3.04%3.84%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,532.00
(-) Cash Dividends Paid (M)1,915.00
(=) Cash Retained (M)2,617.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)906.40566.50339.90
Cash Retained (M)2,617.002,617.002,617.00
(-) Cash Required (M)-906.40-566.50-339.90
(=) Excess Retained (M)1,710.602,050.502,277.10
(/) Shares Outstanding (M)144.21144.21144.21
(=) Excess Retained per Share11.8614.2215.79
LTM Dividend per Share13.2813.2813.28
(+) Excess Retained per Share11.8614.2215.79
(=) Adjusted Dividend25.1427.5029.07
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$1,732.33$5,513.72$6,250.11
Upside / Downside793.23%2,743.00%3,122.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,532.004,826.585,140.315,474.435,830.276,209.236,395.51
Payout Ratio42.26%51.80%61.35%70.90%80.45%90.00%92.50%
Projected Dividends (M)1,915.002,500.363,153.743,881.484,690.515,588.315,915.85

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,314.172,336.112,358.04
Year 2 PV (M)2,701.532,752.992,804.93
Year 3 PV (M)3,077.343,165.683,255.69
Year 4 PV (M)3,441.843,574.203,710.35
Year 5 PV (M)3,795.283,978.594,168.92
PV of Terminal Value (M)99,666.84104,480.78109,478.97
Equity Value (M)114,997.00120,288.35125,776.91
Shares Outstanding (M)144.21144.21144.21
Fair Value$797.45$834.14$872.20
Upside / Downside311.18%330.10%349.73%

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