Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Nedbank Group Limited (NED.JO)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$1,793.51 - $5,879.18$2,913.61
Multi-Stage$1,689.79 - $1,849.79$1,768.30
Blended Fair Value$2,340.96
Current Price$243.04
Upside863.20%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.51%7.72%20.3817.9716.334.547.3014.8714.0712.6811.6611.26
YoY Growth--13.37%10.08%259.32%-37.77%-50.88%5.66%10.92%8.82%3.56%16.20%
Dividend Yield--7.23%8.40%7.68%2.60%5.64%6.94%5.12%4.95%4.89%5.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)32,358.00
(-) Cash Dividends Paid (M)19,482.00
(=) Cash Retained (M)12,876.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6,471.604,044.752,426.85
Cash Retained (M)12,876.0012,876.0012,876.00
(-) Cash Required (M)-6,471.60-4,044.75-2,426.85
(=) Excess Retained (M)6,404.408,831.2510,449.15
(/) Shares Outstanding (M)479.32479.32479.32
(=) Excess Retained per Share13.3618.4221.80
LTM Dividend per Share40.6540.6540.65
(+) Excess Retained per Share13.3618.4221.80
(=) Adjusted Dividend54.0159.0762.44
WACC / Discount Rate6.83%6.83%6.83%
Growth Rate3.70%4.70%5.70%
Fair Value$1,793.51$2,913.61$5,879.18
Upside / Downside637.95%1,098.82%2,319.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)32,358.0033,879.7035,472.9637,141.1538,887.7940,716.5641,938.06
Payout Ratio60.21%66.17%72.12%78.08%84.04%90.00%92.50%
Projected Dividends (M)19,482.0022,416.8925,584.7329,000.9532,681.8936,644.9138,792.71

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.83%6.83%6.83%
Growth Rate3.70%4.70%5.70%
Year 1 PV (M)20,784.1820,984.6121,185.03
Year 2 PV (M)21,993.5922,419.8022,850.10
Year 3 PV (M)23,114.5323,789.6824,477.84
Year 4 PV (M)24,151.1425,096.2626,068.84
Year 5 PV (M)25,107.4026,341.5227,623.70
PV of Terminal Value (M)694,800.74728,952.71764,434.63
Equity Value (M)809,951.58847,584.57886,640.14
Shares Outstanding (M)479.32479.32479.32
Fair Value$1,689.79$1,768.30$1,849.79
Upside / Downside595.27%627.58%661.10%

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