STRA 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 STRA, the dividend discount model StockNews created for the company implies a negative return of 15.74%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Strategic Education Inc are:

• In comparison to other US listed dividend yielding stocks in the Consumer Defensive sector, the expected return of -15.74%, based on the stock's current share price and target price based on a dividend discount model, is greater than 25.32% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Strategic Education Inc bears a discount rate, according to our calculations, lower than 25.32% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Compared to other dividend issuers in the mid-sized market cap category, STRA has a beta lower than 79.77% of them.
• As other dividend issuers in the Consumer Defensive sector, Strategic Education Inc has an equity discount rate lower than merely 17.72% of them.

STRA Dividends vs. Peers