CVX 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 CVX, the DDM model, as implemented by StockNews, implies a positive return of 10.57% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Chevron Corp are:

• CVX's market cap is about 157 billion US dollars -- this puts the stock in the mega-sized market cap class, and its dividend yield is greater than 91.67% of dividend yielding stocks in the same market cap class.
• In comparison to other stocks in the mega-sized revenue class, it has a discount rate lower than 92.31% of dividend issuing stocks in its revenue class.
• Beta is a measure of how volatile a stock is relative to the S&P 500; when evaluated against its peers in the mega-sized revenue class, Chevron Corp has a beta lower than 7.69% of such peers.

CVX Dividends vs. Peers