LBC 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 LBC, the DDM model generated by StockNews estimates a return of negative 19.77% in comparison to its current price. Digging deeper, the aspects of Luther Burbank Corp's dividend discount model that we found most interesting were:

• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Luther Burbank Corp than it is for 85.91% of other dividend issuers in the Financial Services sector.
• Based on dividend growth rate, Luther Burbank Corp has been increasing its dividends at a faster rate than 7.08% of US-listed dividend-issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, LBC's equity discount rate is less than 83.33% of those stocks.

LBC Dividends vs. Peers