FLXS 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. In the case of FLXS, the DDM model, as implemented by StockNews, implies a positive return of 99.8% relative to its current price. To help understand and contextualize the model's evaluation of FLXS, investors may wish to consider are:

• Given its market cap of around 108 million US dollars, this puts the stock in the small-sized market cap class, and its dividend yield is greater than merely 14.93% of dividend yielding stocks in the same market cap class.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of 99.8%, based on the stock's current share price and target price based on a dividend discount model, is greater than 89.06% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Flexsteel Industries Inc bears a discount rate, according to our calculations, lower than 89.06% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for FLXS, approximately 92.4% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

FLXS Dividends vs. Peers