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. In the case of GBLI, the DDM model, as implemented by StockNews, implies a negative return of 20.41% relative to its current price. To help understand and contextualize the model's evaluation of GBLI, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Global Indemnity Group LLC produces a dividend yield 3.5% -- which falls in the top 32.23%.
• 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 -20.41%, based on the stock's current share price and target price based on a dividend discount model, is greater than 58.38% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Global Indemnity Group LLC bears a discount rate, according to our calculations, lower than 58.38% 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 Global Indemnity Group LLC than it is for 62.13% of other dividend issuers in the Financial Services sector.

GBLI Dividends vs. Peers