CAPL 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 CAPL, the DDM model generated by StockNews estimates a return of positive 136.83% in comparison to its current price. Digging deeper, the aspects of CrossAmerica Partners LP's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, CrossAmerica Partners LP produces a dividend yield 12.31% -- which falls in the top 2.05%.
• In comparison to other stocks in the mid-sized revenue class, its discount rate is lower than that of 75.96% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• In terms of opportunity, CAPL's provides a return of 136.83% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 89.57% of all stocks we measured with our dividend discount model.

CAPL Dividends vs. Peers