CHCO 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 CHCO, the dividend discount model StockNews created for the company implies a positive return of 11.67%. Digging deeper, the aspects of City Holding Co's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, City Holding Co's expected return of 11.67% is higher than 74.66% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, CHCO has a discount rate lower than 74.66% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for CHCO than it is for 81.93% of other equities in the Financial Services sector that also issue dividends.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, CHCO's equity discount rate is less than 84.48% of those stocks.

CHCO Dividends vs. Peers