DTE 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. In the case of DTE, the dividend discount model StockNews created for the company implies a negative return of 18.85%. To help understand and contextualize the model's evaluation of DTE, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Utilities sector, Dte Energy Co's expected return of -18.85% is higher than 30.99% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, DTE has a discount rate lower than 30.99% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Dte Energy Co than it is for just 16.9% of other dividend issuers in the Utilities sector.
• As other dividend issuers in the Utilities sector, DTE's equity discount rate is less than 29.58% of those stocks.

DTE Dividends vs. Peers