CULP Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of CULP, the DDM model generated by StockNews estimates a return of negative 1.04% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Culp Inc are:

• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of -1.04%, based on the stock's current share price and target price based on a dividend discount model, is greater than 80.56% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Culp Inc bears a discount rate, according to our calculations, lower than 80.56% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for CULP, approximately 92.59% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• In terms of who is growing the amount of dividends they return to shareholders, CULP boasts a higher growth rate in terms of its annual cash distributed to its owners than 7.69% of the dividend issuers in our set.

CULP Dividends vs. Peers