NMM 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. As for NMM, the DDM model generated by StockNews estimates a return of positive 95.1% in comparison to its current price. Digging deeper, the aspects of Navios Maritime Partners LP's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of 95.1%, based on the stock's current share price and target price based on a dividend discount model, is greater than 94.06% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, NMM has a discount rate lower than 94.06% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, Navios Maritime Partners LP has been increasing its dividends at a faster rate than just 0.7% of US-listed dividend-issuing stocks we observed.
• As other dividend issuers in the Industrials sector, NMM's equity discount rate is less than 3.65% of those stocks.

NMM Dividends vs. Peers