BGSF 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. Regarding BG Staffing Inc, the DDM model, as implemented by StockNews, implies a positive return of 15.76% relative to its current price. To help understand and contextualize the model's evaluation of BGSF, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of 15.76%, based on the stock's current share price and target price based on a dividend discount model, is greater than 83.87% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, BG Staffing Inc bears a discount rate, according to our calculations, lower than 83.87% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for BG Staffing Inc than it is for merely 0.92% of other dividend issuers in the Industrials sector.

BGSF Dividends vs. Peers