PSXP 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. In the case of PSXP, the dividend discount model StockNews created for the company implies a positive return of 203.81%. To help understand and contextualize the model's evaluation of PSXP, investors may wish to consider are:

• In comparison to stocks we observe that provide shareholders with a dividend, Phillips 66 Partners Lp produces a dividend yield 12.76% -- which falls in the top 1.56999999999999%.
• The stock's annual revenue of roughly $2 billion puts it in the small-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 93.08% of companies in the same revenue class.
• Based on dividend growth rate, PSXP boasts a higher growth rate in terms of its annual cash distributed to its owners than 96.77% of the dividend issuers in our set.

PSXP Dividends vs. Peers