AGX 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. In the case of AGX, the DDM model, as implemented by StockNews, implies a positive return of 28.6% relative to its current price. Digging deeper, the aspects of Argan Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of 28.6%, based on the stock's current share price and target price based on a dividend discount model, is greater than 89.5% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, AGX has a discount rate lower than 89.5% of them (a lower discount rate is associated with lower risk).
• In comparison to other dividend stocks in the Industrials sector, AGX is growing its dividends at a faster rate than about 77.98% of them.
• A stock's beta generally indicates its volatility relative to the broader equity market; for Argan Inc, its beta is lower than 78.61% of dividend issuing stocks we observed.

AGX Dividends vs. Peers