OPBK 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 OPBK, the DDM model, as implemented by StockNews, implies a negative return of 14.57% relative to its current price. Digging deeper, the aspects of OP Bancorp's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, OP Bancorp produces a dividend yield 3.64% -- which falls in the top 29.82%.
• 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 -14.57%, based on the stock's current share price and target price based on a dividend discount model, is greater than 63.12% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, OPBK has a discount rate lower than 63.12% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; for OP Bancorp, its beta is lower than 83.49% of dividend issuing stocks we observed.

OPBK Dividends vs. Peers