PEBO 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 PEBO, the DDM model generated by StockNews estimates a return of positive 31.77% in comparison to its current price. Digging deeper, the aspects of Peoples Bancorp Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Peoples Bancorp Inc produces a dividend yield 6.91% -- which falls in the top 12.48%.
• 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 31.77%, based on the stock's current share price and target price based on a dividend discount model, is greater than 75.05% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, PEBO has a discount rate lower than 75.05% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, PEBO boasts a higher growth rate in terms of its annual cash distributed to its owners than 79% of the dividend issuers in our set.

PEBO Dividends vs. Peers