NBTB Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of NBTB, the dividend discount model StockNews created for the company implies a positive return of 14.26%. To help understand and contextualize the model's evaluation of NBTB, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 14.26%, based on the stock's current share price and target price based on a dividend discount model, is greater than 76.33% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Nbt Bancorp Inc bears a discount rate, according to our calculations, lower than 76.33% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for NBTB than it is for 82.84% of other equities in the Financial Services sector that also issue dividends.
• As other dividend issuers in the Financial Services sector, Nbt Bancorp Inc has an equity discount rate lower than 85.8% of them.

NBTB Dividends vs. Peers