MLCO 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 MLCO, the dividend discount model StockNews created for the company implies a positive return of 82.02%. Digging deeper, the aspects of Melco Resorts & Entertainment LTD's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Melco Resorts & Entertainment LTD's dividend yield of 0.86% is in the bottom 14.34%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, Melco Resorts & Entertainment LTD's expected return of 82.02% is higher than 94.67% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Melco Resorts & Entertainment LTD bears a discount rate, according to our calculations, lower than 94.67% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, Melco Resorts & Entertainment LTD has been increasing its dividends at a faster rate than 96.63% of US-listed dividend-issuing stocks we observed.

MLCO Dividends vs. Peers