COKE 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. As for COKE, the dividend discount model StockNews created for the company implies a negative return of 83.53%. Digging deeper, the aspects of Coca-Cola Consolidated Inc's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Coca-Cola Consolidated Inc's dividend yield of 0.39% is in the bottom 3.77%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Defensive sector, the expected return of -83.53%, based on the stock's current share price and target price based on a dividend discount model, is greater than just 1.28% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Coca-Cola Consolidated Inc bears a discount rate, according to our calculations, lower than just 1.28% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Compared to other dividend issuers in the mid-sized market cap category, COKE has a beta lower than 89.15% of them.

COKE Dividends vs. Peers