GBLI 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. Regarding Global Indemnity Group LLC, the DDM model generated by StockNews estimates a return of negative 3.16% in comparison to its current price. To help understand and contextualize the model's evaluation of GBLI, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Global Indemnity Group LLC produces a dividend yield 4.83% -- which falls in the top 25.4%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of -3.16%, based on the stock's current share price and target price based on a dividend discount model, is greater than 60.48% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Global Indemnity Group LLC bears a discount rate, according to our calculations, lower than 60.48% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

GBLI Dividends vs. Peers