JCI 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 Johnson Controls International plc, the DDM model, as implemented by StockNews, implies a negative return of 16.61% relative to its current price. Digging deeper, the aspects of Johnson Controls International plc's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Industrials sector, Johnson Controls International plc offers a higher dividend yield than 70.97% of them.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of -16.61%, based on the stock's current share price and target price based on a dividend discount model, is greater than 71.89% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Johnson Controls International plc bears a discount rate, according to our calculations, lower than 71.89% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

JCI Dividends vs. Peers