ONB 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. As for ONB, the DDM model, as implemented by StockNews, implies a positive return of 29.66% relative to its current price. Digging deeper, the aspects of Old National Bancorp's dividend discount model that we found most interesting were:

• Beta, a measure of volatility relative to the stock market overall, is lower for ONB than it is for 83.43% of other equities in the Financial Services sector that also issue dividends.
• ONB's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 74.51% of them.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, Old National Bancorp has an equity discount rate lower than 86.43% of them.

ONB Dividends vs. Peers