SWX 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 SWX, the DDM model generated by StockNews estimates a return of negative 21.57% in comparison to its current price. Digging deeper, the aspects of Southwest Gas Holdings Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, Southwest Gas Holdings Inc's expected return of -21.57% is higher than 26.47% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Southwest Gas Holdings Inc bears a discount rate, according to our calculations, lower than 26.47% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for SWX than it is for just 23.53% of other equities in the Utilities sector that also issue dividends.
• As other dividend issuers in the Utilities sector, Southwest Gas Holdings Inc has an equity discount rate lower than just 23.53% of them.

SWX Dividends vs. Peers