GAIN 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 Gladstone Investment Corporation, the DDM model generated by StockNews estimates a return of positive 181.18% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Gladstone Investment Corporation are:

• Compared to other US stocks that pay a dividend, Gladstone Investment Corporation's dividend yield of 8.35% is in the top 6.33%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Gladstone Investment Corporation's expected return of 181.18% is higher than 95.48% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Gladstone Investment Corporation bears a discount rate, according to our calculations, lower than 95.48% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for GAIN than it is for 79.37% of other equities in the Financial Services sector that also issue dividends.

GAIN Dividends vs. Peers