STAY 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 STAY, the DDM model, as implemented by StockNews, implies a positive return of 10.1% relative to its current price. To help understand and contextualize the model's evaluation of STAY, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Extended Stay America Inc's dividend yield of 0.29% is in the bottom 2.53%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, Extended Stay America Inc's expected return of 10.1% is higher than 87.33% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Extended Stay America Inc bears a discount rate, according to our calculations, lower than 87.33% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, Extended Stay America Inc has been increasing its dividends at a faster rate than merely 11.86% of US-listed dividend-issuing stocks we observed.

STAY Dividends vs. Peers