AE Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Adams Resources & Energy Inc, the DDM model generated by StockNews estimates a return of negative 34.77% in comparison to its current price. To help understand and contextualize the model's evaluation of AE, investors may wish to consider are:

• AE generates about 1 billion US dollars in revenue annually; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 79.1%.
• Beta, a measure of volatility relative to the stock market overall, is lower for Adams Resources & Energy Inc than it is for 84.55% of other dividend issuers in the Energy sector.
• In terms of who is growing the amount of dividends they return to shareholders, Adams Resources & Energy Inc has been increasing its dividends at a faster rate than merely 21.29% of US-listed dividend-issuing stocks we observed.

AE Dividends vs. Peers