Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Banestes S.A. - Banco do Estado do Espírito Santo (BEES3.SA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$41.42 - $241.95$76.67
Multi-Stage$24.86 - $27.15$25.98
Blended Fair Value$51.33
Current Price$8.14
Upside530.55%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-9.38%0.00%0.180.180.570.340.230.290.240.190.190.00
YoY Growth--1.75%-69.07%68.98%47.20%-21.95%22.28%25.47%3.12%0.00%0.00%
Dividend Yield--2.29%2.05%9.06%6.58%4.62%5.83%4.90%4.63%5.15%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)393.95
(-) Cash Dividends Paid (M)188.20
(=) Cash Retained (M)205.75
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)78.7949.2429.55
Cash Retained (M)205.75205.75205.75
(-) Cash Required (M)-78.79-49.24-29.55
(=) Excess Retained (M)126.96156.51176.20
(/) Shares Outstanding (M)323.81323.81323.81
(=) Excess Retained per Share0.390.480.54
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.390.480.54
(=) Adjusted Dividend0.971.061.13
WACC / Discount Rate7.98%7.98%7.98%
Growth Rate5.50%6.50%7.50%
Fair Value$41.42$76.67$241.95
Upside / Downside408.91%841.87%2,872.39%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)393.95419.56446.83475.87506.80539.75555.94
Payout Ratio47.77%56.22%64.66%73.11%81.55%90.00%92.50%
Projected Dividends (M)188.20235.87288.93347.90413.32485.77514.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.98%7.98%7.98%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)216.39218.44220.49
Year 2 PV (M)243.18247.81252.49
Year 3 PV (M)268.63276.34284.20
Year 4 PV (M)292.78304.04315.62
Year 5 PV (M)315.69330.93346.76
PV of Terminal Value (M)6,712.307,036.517,373.13
Equity Value (M)8,048.978,414.088,792.69
Shares Outstanding (M)323.81323.81323.81
Fair Value$24.86$25.98$27.15
Upside / Downside205.37%219.22%233.59%

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