EIG 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. Regarding Employers Holdings Inc, the dividend discount model StockNews created for the company implies a positive return of 44.69%. Digging deeper, the aspects of Employers Holdings Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Employers Holdings Inc's expected return of 44.69% is higher than 83.86% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, EIG has a discount rate lower than 83.86% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for EIG, approximately 85.15% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, EIG's equity discount rate is less than 93.11% of those stocks.

EIG Dividends vs. Peers