PEBO Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for PEBO, the dividend discount model StockNews created for the company implies a positive return of 12.29%. 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's dividend yield of 5.42% is in the top 14.12%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 12.29%, based on the stock's current share price and target price based on a dividend discount model, is greater than 74.41% 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 74.41% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, PEBO boasts a higher growth rate in terms of its annual cash distributed to its owners than 78.49% of the dividend issuers in our set.

PEBO Dividends vs. Peers