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 DDM model, as implemented by StockNews, implies a negative return of 13.31% relative to its current price. Digging deeper, the aspects of Strategic Education Inc's dividend discount model that we found most interesting were:

• In comparison to other US listed dividend yielding stocks in the Consumer Defensive sector, Strategic Education Inc's expected return of -13.31% is higher than 29.49% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, STRA has a discount rate lower than 29.49% 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 Strategic Education Inc than it is for only 20.51% of other dividend issuers in the Consumer Defensive sector.
• As other dividend issuers in the Consumer Defensive sector, STRA's equity discount rate is less than only 16.67% of those stocks.

STRA Dividends vs. Peers