Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MetLife, Inc. (0K0X.L)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$47.88 - $72.27$59.39
Multi-Stage$110.80 - $122.04$116.31
Blended Fair Value$87.85
Current Price$81.40
Upside7.92%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.46%-0.60%2.242.302.612.702.722.672.672.672.702.59
YoY Growth---2.49%-12.17%-3.20%-0.91%2.09%0.11%-0.05%-1.03%3.96%9.13%
Dividend Yield--2.81%3.12%4.53%3.79%4.47%8.54%6.08%5.81%5.05%4.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,841.00
(-) Cash Dividends Paid (M)1,578.00
(=) Cash Retained (M)2,263.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)768.20480.13288.08
Cash Retained (M)2,263.002,263.002,263.00
(-) Cash Required (M)-768.20-480.13-288.08
(=) Excess Retained (M)1,494.801,782.881,974.93
(/) Shares Outstanding (M)682.25682.25682.25
(=) Excess Retained per Share2.192.612.89
LTM Dividend per Share2.312.312.31
(+) Excess Retained per Share2.192.612.89
(=) Adjusted Dividend4.504.935.21
WACC / Discount Rate6.57%6.57%6.57%
Growth Rate-2.60%-1.60%-0.60%
Fair Value$47.88$59.39$72.27
Upside / Downside-41.18%-27.05%-11.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,841.003,779.713,719.403,660.063,601.663,544.193,650.51
Payout Ratio41.08%50.87%60.65%70.43%80.22%90.00%92.50%
Projected Dividends (M)1,578.001,922.612,255.812,577.902,889.133,189.773,376.73

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.57%6.57%6.57%
Growth Rate-2.60%-1.60%-0.60%
Year 1 PV (M)1,785.791,804.121,822.46
Year 2 PV (M)1,946.181,986.352,026.92
Year 3 PV (M)2,065.792,130.072,195.67
Year 4 PV (M)2,150.442,240.122,332.57
Year 5 PV (M)2,205.262,320.812,441.15
PV of Terminal Value (M)65,441.7268,870.6972,441.91
Equity Value (M)75,595.1879,352.1583,260.68
Shares Outstanding (M)682.25682.25682.25
Fair Value$110.80$116.31$122.04
Upside / Downside36.12%42.89%49.92%

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