PFLT 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. Regarding PennantPark Floating Rate Capital Ltd, the dividend discount model StockNews created for the company implies a positive return of 144.88%. Digging deeper, the aspects of PennantPark Floating Rate Capital Ltd's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, PFLT offers a dividend yield in the top 2.73% of stocks in our set.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, PennantPark Floating Rate Capital Ltd's expected return of 144.88% is higher than 93.31% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, PennantPark Floating Rate Capital Ltd bears a discount rate, according to our calculations, lower than 93.31% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, PFLT boasts a higher growth rate in terms of its annual cash distributed to its owners than 71.84% of the dividend issuers in our set.

PFLT Dividends vs. Peers