EBAY 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 EBAY, the dividend discount model StockNews created for the company implies a positive return of 55.25%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Ebay Inc are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Technology sector, Ebay Inc's expected return of 55.25% is higher than 85.71% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, EBAY has a discount rate lower than 85.71% of them (a lower discount rate is associated with lower risk).
• Beta is a measure of volatility relative to the stock market at large; for EBAY, its beta is lower than 95.73% of stocks in the large-sized revenue class.

EBAY Dividends vs. Peers