FMBI 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 First Midwest Bancorp Inc, the dividend discount model StockNews created for the company implies a positive return of 1.71%. To help understand and contextualize the model's evaluation of FMBI, investors may wish to consider are:

• FMBI's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 72.2% of them.
• In terms of who is growing the amount of dividends they return to shareholders, First Midwest Bancorp Inc has been increasing its dividends at a faster rate than 83.86% of US-listed dividend-issuing stocks we observed.
• As other dividend issuers in the Financial Services sector, First Midwest Bancorp Inc has an equity discount rate lower than 71.65% of them.

FMBI Dividends vs. Peers