CTBI 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 CTBI, the DDM model, as implemented by StockNews, implies a negative return of 1.82% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Community Trust Bancorp Inc are:

• In comparison to stocks we observe that provide shareholders with a dividend, Community Trust Bancorp Inc's dividend yield of 4.32% is in the top 21.02%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of -1.82%, based on the stock's current share price and target price based on a dividend discount model, is greater than 68.76% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, CTBI has a discount rate lower than 68.76% of them (a lower discount rate is associated with lower risk).
• CTBI's growth rate in terms of the amount of dividends it returns to shareholders is greater than only 21.73% of its fellow dividend stocks in the Financial Services sector.

CTBI Dividends vs. Peers