ENIC 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. Regarding Enel Chile SA, the DDM model, as implemented by StockNews, implies a positive return of 338.31% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Enel Chile SA are:

• As for its position relative to other Utilities stocks that issue dividends, Enel Chile SA offers a higher dividend yield than 98.59% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of 338.31%, based on the stock's current share price and target price based on a dividend discount model, is greater than 97.18% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, ENIC has a discount rate lower than 97.18% of them (a lower discount rate is associated with lower risk).
• As other dividend issuers in the Utilities sector, Enel Chile SA has an equity discount rate lower than 97.18% of them.

ENIC Dividends vs. Peers