BPMP 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. In the case of BPMP, the DDM model, as implemented by StockNews, implies a positive return of 263.35% relative to its current price. Digging deeper, the aspects of BP Midstream Partners LP's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, BP Midstream Partners LP produces a dividend yield 13.14% -- which falls in the top 1.45%.
• The stock's annual revenue of roughly $131 million puts it in the small-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 95.27% of companies in the same revenue class.
• As other dividend issuers in the Energy sector, BPMP's equity discount rate is less than 86.36% of those stocks.

BPMP Dividends vs. Peers