AGR 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 Avangrid Inc, the dividend discount model StockNews created for the company implies a positive return of 58.35%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Avangrid Inc are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of 58.35%, based on the stock's current share price and target price based on a dividend discount model, is greater than 85.29% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, AGR has a discount rate lower than 85.29% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Avangrid Inc than it is for 79.41% of other dividend issuers in the Utilities sector.

AGR Dividends vs. Peers