PRGS 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. In the case of PRGS, the dividend discount model StockNews created for the company implies a negative return of 21.54%. Digging deeper, the aspects of Progress Software Corp's dividend discount model that we found most interesting were:

• PRGS generates about 437 million US dollars in revenue annually; relative to its peers in the small-sized revenue class, it has a dividend yield higher than 26.93%.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for PRGS, approximately 86.79% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

PRGS Dividends vs. Peers