LEG 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 LEG, the DDM model, as implemented by StockNews, implies a negative return of 35.64% relative to its current price. To help understand and contextualize the model's evaluation of LEG, investors may wish to consider are:

• In comparison to other stocks in the Consumer Cyclical sector, Leggett & Platt Inc offers a higher dividend yield than 84.03% of them.
• In comparison to other stocks in the mid-sized revenue class, its discount rate is lower than that of 80.05% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for LEG, approximately only 11.92% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

LEG Dividends vs. Peers