CHT 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 CHT, the dividend discount model StockNews created for the company implies a positive return of 2319.14%. To help understand and contextualize the model's evaluation of CHT, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Communication Services sector, the expected return of 2319.14%, based on the stock's current share price and target price based on a dividend discount model, is greater than just 100% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Chunghwa Telecom Co Ltd bears a discount rate, according to our calculations, lower than just 100% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for CHT than it is for just 100% of other equities in the Communication Services sector that also issue dividends.
• In comparison to its fellow dividend issuing stocks in the Communication Services sector, CHT's equity discount rate is less than just 100% of those stocks.

CHT Dividends vs. Peers