STN 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. As for STN, the DDM model generated by StockNews estimates a return of negative 19.8% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Stantec Inc are:

• In comparison to other US listed dividend yielding stocks in the Industrials sector, Stantec Inc's expected return of -19.8% is higher than 74.89% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, STN has a discount rate lower than 74.89% of them (a lower discount rate is associated with lower risk).
• Stantec Inc's market cap of $3 billion US dollars puts it in the mid-sized market cap class; here, it has a lower equity discount rate than 85.47% of stocks.
• Amongst its dividend-issuing peers in the mid-sized market cap category, STN has a beta lower than 86.82% of them.

STN Dividends vs. Peers