ALSK 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 Alaska Communications Systems Group Inc, the DDM model, as implemented by StockNews, implies a positive return of 34.74% relative to its current price. To help understand and contextualize the model's evaluation of ALSK, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Communication Services sector, Alaska Communications Systems Group Inc's expected return of 34.74% is higher than 25.93% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ALSK has a discount rate lower than 25.93% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Alaska Communications Systems Group Inc, its beta is lower than 92.72% of dividend issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Communication Services sector, Alaska Communications Systems Group Inc has an equity discount rate lower than only 18.52% of them.

ALSK Dividends vs. Peers