SLGN 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 SLGN, the dividend discount model StockNews created for the company implies a positive return of 140.92%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Silgan Holdings Inc are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of 140.92%, based on the stock's current share price and target price based on a dividend discount model, is greater than 97.33% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, SLGN has a discount rate lower than 97.33% 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 Silgan Holdings Inc than it is for 97.33% of other dividend issuers in the Consumer Cyclical sector.

SLGN Dividends vs. Peers