SON 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 SON, the DDM model, as implemented by StockNews, implies a negative return of 13.47% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Sonoco Products Co are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, Sonoco Products Co offers a higher dividend yield than 82.67% of them.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of -13.47%, based on the stock's current share price and target price based on a dividend discount model, is greater than 79.33% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, SON has a discount rate lower than 79.33% of them (a lower discount rate is associated with lower risk).
• With a market cap of roughly $6 billion, SON is in the mid-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 70.77% of them.

SON Dividends vs. Peers