DEO Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for DEO, the DDM model, as implemented by StockNews, implies a positive return of 4.22% relative to its current price. Digging deeper, the aspects of Diageo Plc's dividend discount model that we found most interesting were:

• The Diageo Plc's dividend growth rate is greater than 25.9% of dividend issuers in the large-sized market cap class, where it lives.
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Diageo Plc, its beta is lower than 78.17% of dividend issuing stocks we observed.

DEO Dividends vs. Peers