MED 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 MED, the DDM model, as implemented by StockNews, implies a positive return of 3.7% relative to its current price. To help understand and contextualize the model's evaluation of MED, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, Medifast Inc's expected return of 3.7% is higher than 81.76% of its fellow sector mates.
• MED's annual revenue of 759 million US dollars puts it in the small-sized revenue class; relative to suck stocks, its discount rate is lower than that of 13.85% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• Compared to all dividend issuing stocks in our set, Medifast Inc bears a discount rate, according to our calculations, lower than 81.76% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Amongst its dividend-issuing peers in the mid-sized market cap category, MED's beta -- a measure of volatility relative to the market at large -- is lower than 85.02% of them.

MED Dividends vs. Peers