ALSK Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of ALSK, the DDM model generated by StockNews estimates a return of negative 27.53% in comparison to its current price. Digging deeper, the aspects of Alaska Communications Systems Group 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 Communication Services sector, Alaska Communications Systems Group Inc's expected return of -27.53% is higher than merely 18.52% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, ALSK has a discount rate lower than merely 18.52% 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 91.19% of dividend issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Communication Services sector, ALSK's equity discount rate is less than merely 14.81% of those stocks.

ALSK Dividends vs. Peers