Estee Lauder Cos. Cl A (EL) Dividends

EL 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 EL, the DDM model generated by StockNews estimates a return of negative 83.76% in comparison to its current price. To help understand and contextualize the model's evaluation of EL, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Consumer Defensive sector, Estee Lauder Companies Inc's expected return of -83.76% is higher than merely 1.19% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, EL has a discount rate lower than merely 1.19% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for EL than it is for merely 0% of other equities in the Consumer Defensive sector that also issue dividends.
• As other dividend issuers in the Consumer Defensive sector, Estee Lauder Companies Inc has an equity discount rate lower than 3.57% of them.

EL Dividends vs. Peers