PRGS Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of PRGS, the dividend discount model StockNews created for the company implies a negative return of 17.09%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Progress Software Corp are:

• The amount of revenue Progress Software Corp earns annually is around 437 million; in terms of how this translates into revenue, it has a dividend yield higher than merely 23.13% of companies in the small revenue class.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for PRGS, approximately 87.77% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

PRGS Dividends vs. Peers