Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Singapore Telecommunications Limited (Z74.SI)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$3.27 - $5.01$4.08
Multi-Stage$8.48 - $9.33$8.89
Blended Fair Value$6.49
Current Price$4.13
Upside57.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.58%0.36%0.170.110.100.070.080.170.170.200.170.17
YoY Growth--57.06%11.46%39.12%-10.51%-55.44%0.00%-14.63%18.85%0.94%4.17%
Dividend Yield--4.71%4.20%3.89%2.61%3.15%6.79%5.66%6.00%4.34%4.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,079.60
(-) Cash Dividends Paid (M)5,333.30
(=) Cash Retained (M)746.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,215.92759.95455.97
Cash Retained (M)746.30746.30746.30
(-) Cash Required (M)-1,215.92-759.95-455.97
(=) Excess Retained (M)-469.62-13.65290.33
(/) Shares Outstanding (M)16,557.9316,557.9316,557.93
(=) Excess Retained per Share-0.030.000.02
LTM Dividend per Share0.320.320.32
(+) Excess Retained per Share-0.030.000.02
(=) Adjusted Dividend0.290.320.34
WACC / Discount Rate6.16%6.16%6.16%
Growth Rate-2.58%-1.58%-0.58%
Fair Value$3.27$4.08$5.01
Upside / Downside-20.75%-1.12%21.25%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,079.605,983.285,888.485,795.185,703.365,613.005,781.39
Payout Ratio87.72%88.18%88.63%89.09%89.54%90.00%92.50%
Projected Dividends (M)5,333.305,276.035,219.245,162.925,107.075,051.705,347.79

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.16%6.16%6.16%
Growth Rate-2.58%-1.58%-0.58%
Year 1 PV (M)4,919.474,969.975,020.47
Year 2 PV (M)4,537.634,631.274,725.86
Year 3 PV (M)4,185.324,315.544,448.43
Year 4 PV (M)3,860.264,021.224,187.17
Year 5 PV (M)3,560.363,746.893,941.16
PV of Terminal Value (M)119,342.40125,594.89132,106.72
Equity Value (M)140,405.44147,279.78154,429.81
Shares Outstanding (M)16,557.9316,557.9316,557.93
Fair Value$8.48$8.89$9.33
Upside / Downside105.32%115.37%125.83%

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