PZZA 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. As for PZZA, the dividend discount model StockNews created for the company implies a negative return of 45.61%. To help understand and contextualize the model's evaluation of PZZA, investors may wish to consider are:

• PZZA generates about 2 billion US dollars in revenue annually; relative to its peers in the small-sized revenue class, it has a dividend yield higher than merely 12.83%.
• PZZA's annual revenue of 2 billion US dollars puts it in the small-sized revenue class; relative to suck stocks, it has a discount rate lower than 8.41% of dividend issuing stocks in its revenue class.
• Amongst its dividend-issuing peers in the mid-sized market cap category, PZZA's beta -- a measure of volatility relative to the market at large -- is lower than 92.86% of them.

PZZA Dividends vs. Peers