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. As for MCY, the dividend discount model StockNews created for the company implies a positive return of 91.89%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Mercury General Corp 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 92.39%.
• Mercury General Corp's dividend growth rate is higher than merely 11.2% of stocks in its sector (Financial Services).
• The stock's annual revenue of roughly $4 billion puts it in the mid-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 86.58% of companies in the same revenue class.

MCY Dividends vs. Peers