HHR 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 HHR, the dividend discount model StockNews created for the company implies a positive return of 2.66%. To help understand and contextualize the model's evaluation of HHR, investors may wish to consider are:

• HHR's growth rate in terms of the amount of dividends it returns to shareholders is greater than merely 13.49% of its fellow dividend stocks in the Industrials sector.
• With a market cap of roughly $1 billion, HHR is in the small-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 91.2% of them.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for HHR, approximately 86.41% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

HHR Dividends vs. Peers