MFA Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for MFA, the dividend discount model StockNews created for the company implies a positive return of 138.8%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Mfa Financial Inc are:

• In comparison to other stocks in the small-sized revenue class, its discount rate is lower than that of 98.48% 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 MFA, approximately merely 100% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• MFA's market cap of approximately $1 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 89.3% of them.

MFA Dividends vs. Peers