FRO 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. Regarding Frontline Ltd, the DDM model, as implemented by StockNews, implies a positive return of 177.25% relative to its current price. Digging deeper, the aspects of Frontline Ltd's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Frontline Ltd produces a dividend yield 31.45% -- which falls in the top 0.299999999999997%.
• FRO's market cap of approximately $1 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 93.05% of them.
• As other dividend issuers in the Energy sector, Frontline Ltd has an equity discount rate lower than 88.18% of them.

FRO Dividends vs. Peers