FMS 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. In the case of FMS, the dividend discount model StockNews created for the company implies a positive return of 28.78%. Digging deeper, the aspects of Fresenius Medical Care AG & Co KGaA's dividend discount model that we found most interesting were:

• FMS generates about 17 billion US dollars in revenue annually; relative to its peers in the large-sized revenue class, it has a dividend yield higher than merely 17.13%.
• Beta is a measure of volatility relative to the stock market at large; for FMS, its beta is lower than 93.15% of stocks in the large-sized revenue class.

FMS Dividends vs. Peers