MPC 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 Marathon Petroleum Corp, the DDM model generated by StockNews estimates a return of negative 8.7% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Marathon Petroleum Corp are:

• MPC's market cap is about 21 billion US dollars -- this puts the stock in the large-sized market cap class, and its dividend yield is greater than 93.16% of dividend yielding stocks in the same market cap class.
• Marathon Petroleum Corp's market cap of $21 billion US dollars puts it in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 5.13% of them.
• A stock's beta generally indicates its volatility relative to the broader equity market; for Marathon Petroleum Corp, its beta is lower than 3.35% of dividend issuing stocks we observed.

MPC Dividends vs. Peers