R 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 R, the DDM model generated by StockNews estimates a return of negative 2.22% in comparison to its current price. To help understand and contextualize the model's evaluation of R, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Ryder System Inc produces a dividend yield 4.53% -- which falls in the top 28.77%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of -2.22%, based on the stock's current share price and target price based on a dividend discount model, is greater than 78.44% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, R has a discount rate lower than 78.44% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for Ryder System Inc than it is for 31.19% of other dividend issuers in the Industrials sector.

R Dividends vs. Peers