FCF 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 First Commonwealth Financial Corp, the DDM model, as implemented by StockNews, implies a negative return of 3.89% relative to its current price. To help understand and contextualize the model's evaluation of FCF, investors may wish to consider are:

• In comparison to stocks we observe that provide shareholders with a dividend, First Commonwealth Financial Corp produces a dividend yield 4.24% -- which falls in the top 22.11%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of -3.89%, based on the stock's current share price and target price based on a dividend discount model, is greater than 67.58% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, FCF has a discount rate lower than 67.58% of them (a lower discount rate is associated with lower risk).
• Amongst its dividend-issuing peers in the small-sized market cap category, FCF's beta -- a measure of volatility relative to the market at large -- is lower than 36.33% of them.

FCF Dividends vs. Peers