SAFT 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. Regarding Safety Insurance Group Inc, the dividend discount model StockNews created for the company implies a positive return of 110.62%. To help understand and contextualize the model's evaluation of SAFT, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 110.62%, based on the stock's current share price and target price based on a dividend discount model, is greater than 87.9% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, SAFT has a discount rate lower than 87.9% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for SAFT than it is for 87.1% of other equities in the Financial Services sector that also issue dividends.
• As other dividend issuers in the Financial Services sector, Safety Insurance Group Inc has an equity discount rate lower than 92.06% of them.

SAFT Dividends vs. Peers