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Qatar Islamic Bank (Q.P.S.C.) (QIBK.QA)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$110.00 - $396.87$350.11
Multi-Stage$50.73 - $55.48$53.06
Blended Fair Value$201.59
Current Price$22.15
Upside810.09%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.29%9.32%0.980.630.580.400.520.500.500.480.420.42
YoY Growth--56.00%8.70%43.75%-23.81%5.00%0.00%5.26%11.76%0.00%6.25%
Dividend Yield--4.74%3.41%3.23%1.68%3.19%3.48%3.32%4.81%4.15%4.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,715.36
(-) Cash Dividends Paid (M)2,108.99
(=) Cash Retained (M)2,606.37
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)943.07589.42353.65
Cash Retained (M)2,606.372,606.372,606.37
(-) Cash Required (M)-943.07-589.42-353.65
(=) Excess Retained (M)1,663.302,016.952,252.72
(/) Shares Outstanding (M)2,362.932,362.932,362.93
(=) Excess Retained per Share0.700.850.95
LTM Dividend per Share0.890.890.89
(+) Excess Retained per Share0.700.850.95
(=) Adjusted Dividend1.601.751.85
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Fair Value$110.00$350.11$396.87
Upside / Downside396.61%1,480.62%1,691.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,715.365,021.865,348.285,695.926,066.156,460.456,654.26
Payout Ratio44.73%53.78%62.84%71.89%80.95%90.00%92.50%
Projected Dividends (M)2,108.992,700.793,360.624,094.824,910.265,814.416,155.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.03%7.03%7.03%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,499.682,523.372,547.06
Year 2 PV (M)2,878.762,933.592,988.94
Year 3 PV (M)3,246.483,339.673,434.63
Year 4 PV (M)3,603.093,741.653,884.18
Year 5 PV (M)3,948.834,139.564,337.59
PV of Terminal Value (M)103,699.23108,707.94113,908.35
Equity Value (M)119,876.06125,385.79131,100.75
Shares Outstanding (M)2,362.932,362.932,362.93
Fair Value$50.73$53.06$55.48
Upside / Downside129.04%139.56%150.48%

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