MCY 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 Mercury General Corp, the DDM model, as implemented by StockNews, implies a positive return of 72.73% relative to its current price. To help understand and contextualize the model's evaluation of MCY, investors may wish to consider are:

• MCY generates about 4 billion US dollars in revenue annually; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 93.93%.
• MCY's growth rate in terms of the amount of dividends it returns to shareholders is greater than only 12.1% of its fellow dividend stocks in the Financial Services sector.
• MCY's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 88.03% of them.

MCY Dividends vs. Peers