LBC 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 Luther Burbank Corp, the DDM model, as implemented by StockNews, implies a negative return of 26.99% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Luther Burbank Corp are:

• Beta, a measure of volatility relative to the stock market overall, is lower for LBC than it is for 85.27% of other equities in the Financial Services sector that also issue dividends.
• Based on dividend growth rate, Luther Burbank Corp has been increasing its dividends at a faster rate than 7.31% 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 82.12% of those stocks.

LBC Dividends vs. Peers