AME Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for AME, the dividend discount model StockNews created for the company implies a negative return of 86.17%. Digging deeper, the aspects of Ametek Inc's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Ametek Inc produces a dividend yield 0.63% -- which falls in the bottom 8.57%.
• Regarding its relative worth based on the dividend discount model, AME's provides a return of -86.17% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 5.19% of all stocks we measured with our dividend discount model.
• Beta, a measure of volatility relative to the stock market overall, is lower for Ametek Inc than it is for 26.61% of other dividend issuers in the Industrials sector.

AME Dividends vs. Peers