AMSWA 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 AMSWA, the DDM model, as implemented by StockNews, implies a negative return of 24.93% relative to its current price. Digging deeper, the aspects of American Software Inc's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Technology sector, American Software Inc offers a higher dividend yield than 80.95% of them.
• With a market cap of roughly $560 million, AMSWA is in the small-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 72.7% of them.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for AMSWA, approximately 74.28% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

AMSWA Dividends vs. Peers