CAKE Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for CAKE, the DDM model, as implemented by StockNews, implies a positive return of 25.61% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Cheesecake Factory Inc are:

• CAKE generates about 2 billion US dollars in revenue annually; in terms of how this translates into revenue, it has a dividend yield higher than 85.31% of companies in the mid revenue class.
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Cheesecake Factory Inc, its beta is lower than merely 15.51% of dividend issuing stocks we observed.

CAKE Dividends vs. Peers