CHT Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding Chunghwa Telecom Co Ltd, the DDM model generated by StockNews estimates a return of positive 3140.87% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Chunghwa Telecom Co Ltd are:

• In comparison to other US listed dividend yielding stocks in the Communication Services sector, the expected return of 3140.87%, based on the stock's current share price and target price based on a dividend discount model, is greater than only 100% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Chunghwa Telecom Co Ltd bears a discount rate, according to our calculations, lower than only 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 Chunghwa Telecom Co Ltd than it is for only 100% of other dividend issuers in the Communication Services sector.

CHT Dividends vs. Peers