MAS 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 Masco Corp, the dividend discount model StockNews created for the company implies a negative return of 64.95%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Masco Corp are:

• Relative to all dividend yielding stocks in our set, Masco Corp's dividend yield of 1.08% is in the bottom 18.58%.
• The stock's annual revenue of roughly $6 billion puts it in the large-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than only 22.56% of companies in the same revenue class.
• As other dividend issuers in the Basic Materials sector, Masco Corp has an equity discount rate lower than 77.12% of them.

MAS Dividends vs. Peers