EV 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 Eaton Vance Corp, the DDM model, as implemented by StockNews, implies a negative return of 58.49% relative to its current price. Digging deeper, the aspects of Eaton Vance Corp's dividend discount model that we found most interesting were:

• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Eaton Vance Corp's expected return of -58.49% is higher than merely 23.58% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, EV has a discount rate lower than merely 23.58% of them (a lower discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for EV, approximately merely 14.66% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

EV Dividends vs. Peers