CIB 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 Bancolombia Sa, the DDM model generated by StockNews estimates a return of negative 0.63% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Bancolombia Sa are:

• With a market cap of roughly $9 billion, CIB is in the large-sized market cap class; here, it has a lower equity discount rate than just 20.37% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for CIB, approximately just 21.39% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• The stock's annual revenue of roughly $3 billion puts it in the mid-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 73.71% of companies in the same revenue class.

CIB Dividends vs. Peers