Gap Inc. (GPS) Dividends

GPS 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 Gap Inc, the DDM model, as implemented by StockNews, implies a negative return of 23.69% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Gap Inc are:

• GPS's annual revenue of 17 billion US dollars puts it in the large-sized revenue class; relative to suck stocks, its discount rate is lower than that of 93.92% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• GPS's annual revenue, now at roughly $17 billion US dollars, classifies the stock in the large-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of 9.3% of them.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for GPS, approximately 5.62% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

GPS Dividends vs. Peers