MPC 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. In the case of MPC, the DDM model, as implemented by StockNews, implies a negative return of 24.92% relative to its current price. Digging deeper, the aspects of Marathon Petroleum Corp's dividend discount model that we found most interesting were:

• Given its market cap of around 27 billion US dollars, its dividend yield of 5.61 is greater than 91.98% of its fellow stocks in the large market cap class.
• Marathon Petroleum Corp's market cap of $27 billion US dollars puts it in the large-sized market cap class; here, it has a lower equity discount rate than 4.85% of stocks.
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Marathon Petroleum Corp, its beta is lower than 3.19% of dividend issuing stocks we observed.

MPC Dividends vs. Peers