Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Taiwan Fire & Marine Insurance Co., Ltd. (2832.TW)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$103.19 - $455.97$179.90
Multi-Stage$70.33 - $76.80$73.51
Blended Fair Value$126.71
Current Price$53.57
Upside136.52%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.63%1.64%1.421.090.821.201.090.981.200.981.310.99
YoY Growth--30.00%33.33%-31.82%10.00%11.11%-18.18%22.22%-25.00%32.74%-18.18%
Dividend Yield--4.22%4.12%3.95%5.80%4.88%5.35%5.98%4.77%6.89%4.61%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,108.58
(-) Cash Dividends Paid (M)724.40
(=) Cash Retained (M)384.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)221.72138.5783.14
Cash Retained (M)384.18384.18384.18
(-) Cash Required (M)-221.72-138.57-83.14
(=) Excess Retained (M)162.46245.60301.03
(/) Shares Outstanding (M)331.26331.26331.26
(=) Excess Retained per Share0.490.740.91
LTM Dividend per Share2.192.192.19
(+) Excess Retained per Share0.490.740.91
(=) Adjusted Dividend2.682.933.10
WACC / Discount Rate7.84%7.84%7.84%
Growth Rate5.11%6.11%7.11%
Fair Value$103.19$179.90$455.97
Upside / Downside92.63%235.83%751.18%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,108.581,176.361,248.281,324.601,405.581,491.521,536.27
Payout Ratio65.35%70.28%75.21%80.14%85.07%90.00%92.50%
Projected Dividends (M)724.40826.70938.791,061.511,195.721,342.371,421.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.84%7.84%7.84%
Growth Rate5.11%6.11%7.11%
Year 1 PV (M)759.36766.59773.81
Year 2 PV (M)792.09807.24822.52
Year 3 PV (M)822.68846.39870.54
Year 4 PV (M)851.22884.08917.87
Year 5 PV (M)877.78920.34964.53
PV of Terminal Value (M)19,194.2620,124.8221,091.13
Equity Value (M)23,297.4024,349.4425,440.41
Shares Outstanding (M)331.26331.26331.26
Fair Value$70.33$73.51$76.80
Upside / Downside31.29%37.22%43.36%

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