UFCS 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 UFCS, the DDM model, as implemented by StockNews, implies a negative return of 35.39% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for United Fire Group Inc are:

• Amongst its dividend-issuing peers in the small-sized market cap category, UFCS's beta -- a measure of volatility relative to the market at large -- is lower than merely 24.16% of them.
• In comparison to other stocks in the small-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 28.73% of companies in the same revenue class.

UFCS Dividends vs. Peers