SLB 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. Regarding Schlumberger Limited, the dividend discount model StockNews created for the company implies a negative return of 7.09%. Digging deeper, the aspects of Schlumberger Limited's dividend discount model that we found most interesting were:

• With a market cap of roughly $30 billion, SLB is in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than only 10.07% of them.
• Schlumberger Limited's dividend growth rate is greater than only 22.09% of dividend issuers in the large-sized market cap class, where it lives.
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Schlumberger Limited, its beta is lower than 8.61% of dividend issuing stocks we observed.

SLB Dividends vs. Peers