IHG 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. As for IHG, the dividend discount model StockNews created for the company implies a negative return of 29.29%. Digging deeper, the aspects of Intercontinental Hotels Group Plc's dividend discount model that we found most interesting were:

• Amongst its dividend-issuing peers in the large-sized market cap category, IHG has a beta lower than 30.51% of them.
• IHG's market cap of approximately $7 billion makes it a large-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 31.57% of them.
• Based on dividend growth rate, IHG boasts a higher growth rate in terms of its annual cash distributed to its owners than 8.52% of the dividend issuers in our set.

IHG Dividends vs. Peers