PSTL 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 PSTL, the DDM model, as implemented by StockNews, implies a positive return of 108.87% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Postal Realty Trust Inc are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Real Estate sector, the expected return of 108.87%, based on the stock's current share price and target price based on a dividend discount model, is greater than 88.95% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, PSTL has a discount rate lower than 88.95% of them (a lower discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; for Postal Realty Trust Inc, its beta is lower than 98.92% of dividend issuing stocks we observed.
• As other dividend issuers in the Real Estate sector, Postal Realty Trust Inc has an equity discount rate lower than 97.24% of them.

PSTL Dividends vs. Peers