CMA 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 CMA, the dividend discount model StockNews created for the company implies a positive return of 6.09%. Digging deeper, the aspects of Comerica Inc's dividend discount model that we found most interesting were:

• CMA generates about 3 billion US dollars in revenue annually; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 93.2%.
• Comerica Inc's market cap of $6 billion US dollars puts it in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than only 11.09% of them.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for CMA, approximately 9.91% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

CMA Dividends vs. Peers