NWBI 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. Regarding Northwest Bancshares Inc, the dividend discount model StockNews created for the company implies a positive return of 104.48%. To help understand and contextualize the model's evaluation of NWBI, investors may wish to consider are:

• As for its position relative to other Financial Services stocks that issue dividends, Northwest Bancshares Inc offers a higher dividend yield than 91.36% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Northwest Bancshares Inc's expected return of 104.48% is higher than 91.94% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Northwest Bancshares Inc bears a discount rate, according to our calculations, lower than 91.94% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, NWBI boasts a higher growth rate in terms of its annual cash distributed to its owners than 6.62% of the dividend issuers in our set.

NWBI Dividends vs. Peers