PFS 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 PFS, the DDM model, as implemented by StockNews, implies a negative return of 1.32% relative to its current price. Digging deeper, the aspects of Provident Financial Services Inc's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Provident Financial Services Inc's dividend yield of 5.33% is in the top 13.55%.
• Amongst its dividend-issuing peers in the small-sized market cap category, PFS's beta -- a measure of volatility relative to the market at large -- is lower than merely 16.4% of them.

PFS Dividends vs. Peers