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 dividend discount model StockNews created for the company implies a positive return of 14.14%. Digging deeper, the aspects of First Commonwealth Financial Corp's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, FCF offers a dividend yield in the top 21.96% of stocks in our set.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, First Commonwealth Financial Corp's expected return of 14.14% is higher than 68.06% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, FCF has a discount rate lower than 68.06% 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 36.43% of them.

FCF Dividends vs. Peers