CATC 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. Regarding Cambridge Bancorp, the DDM model, as implemented by StockNews, implies a negative return of 20.33% relative to its current price. To help understand and contextualize the model's evaluation of CATC, investors may wish to consider are:

• A stock's beta generally indicates its volatility relative to the broader equity market; for Cambridge Bancorp, its beta is lower than 68.89% of dividend issuing stocks we observed.
• Based on dividend growth rate, CATC boasts a higher growth rate in terms of its annual cash distributed to its owners than 61.49% of the dividend issuers in our set.
• As other dividend issuers in the Financial Services sector, CATC's equity discount rate is less than 69.17% of those stocks.

CATC Dividends vs. Peers