PHM 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 PHM, the dividend discount model StockNews created for the company implies a negative return of 78.9%. Digging deeper, the aspects of Pultegroup Inc's dividend discount model that we found most interesting were:

• With a market cap of roughly $12 billion, PHM is in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than just 18.88% of them.
• Compared to other dividend issuers in the large-sized market cap category, PHM has a beta lower than just 18.69% of them.
• In terms of opportunity, PHM's provides a return of -78.9% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than just 11.16% of all stocks we measured with our dividend discount model.

PHM Dividends vs. Peers