FINV Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of FINV, the DDM model, as implemented by StockNews, implies a positive return of 123.55% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for FinVolution Group are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 123.55%, based on the stock's current share price and target price based on a dividend discount model, is greater than 90.26% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, FINV has a discount rate lower than 90.26% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for FINV than it is for 87.48% of other equities in the Financial Services sector that also issue dividends.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, FinVolution Group has an equity discount rate lower than 92.05% of them.

FINV Dividends vs. Peers