OFS 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 OFS, the DDM model generated by StockNews estimates a return of positive 229.12% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for OFS Capital Corp are:

• Compared to other US stocks that pay a dividend, OFS Capital Corp produces a dividend yield 27.25% -- which falls in the top 0.659999999999997%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, OFS Capital Corp's expected return of 229.12% is higher than 95.57% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, OFS Capital Corp bears a discount rate, according to our calculations, lower than 95.57% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, OFS Capital Corp has an equity discount rate lower than 2.5% of them.

OFS Dividends vs. Peers