ORI 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 ORI, the DDM model, as implemented by StockNews, implies a positive return of 7.95% relative to its current price. Digging deeper, the aspects of Old Republic International Corp's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Old Republic International Corp produces a dividend yield 4.26% -- which falls in the top 21.2%.
• In comparison to other dividend stocks in the Financial Services sector, ORI is growing its dividends at a faster rate than about 25.58% of them.
• The stock's annual revenue of roughly $6 billion puts it in the mid-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 76.23% of companies in the same revenue class.

ORI Dividends vs. Peers