CMP 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. In the case of CMP, the DDM model, as implemented by StockNews, implies a positive return of 20.22% relative to its current price. Digging deeper, the aspects of Compass Minerals International Inc's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Compass Minerals International Inc's dividend yield of 4.74% is in the top 26.07%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, Compass Minerals International Inc's expected return of 20.22% is higher than 78.63% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, CMP has a discount rate lower than 78.63% of them (a lower discount rate is associated with lower risk).
• Compass Minerals International Inc has annual revenue of approximately $2 billion; this puts it in the small-sized revenue class -- where its dividend growth rate surpasses that of merely 24.64% of US-listed, dividend-issuing stocks in the same revenue class.

CMP Dividends vs. Peers