MNRO 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. Regarding Monro Inc, the DDM model, as implemented by StockNews, implies a negative return of 30.87% relative to its current price. Digging deeper, the aspects of Monro Inc's dividend discount model that we found most interesting were:

• The amount of revenue Monro Inc earns annually is around 1 billion; in terms of how this translates into revenue, it has a dividend yield higher than 32.13% of companies in the small revenue class.
• MNRO's annual revenue of 1 billion US dollars puts it in the small-sized revenue class; relative to suck stocks, its discount rate is lower than that of 18.21% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• Amongst its dividend-issuing peers in the mid-sized market cap category, MNRO has a beta lower than 82.4% of them.

MNRO Dividends vs. Peers