POWL 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. Regarding Powell Industries Inc, the dividend discount model StockNews created for the company implies a negative return of 10.61%. To help understand and contextualize the model's evaluation of POWL, investors may wish to consider are:

• In comparison to other stocks in the Industrials sector, POWL provides shareholders with a dividend yield greater than 90.32% such stocks.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of -10.61%, based on the stock's current share price and target price based on a dividend discount model, is greater than 75.58% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, POWL has a discount rate lower than 75.58% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, POWL boasts a higher growth rate in terms of its annual cash distributed to its owners than only 13.83% of the dividend issuers in our set.

POWL Dividends vs. Peers