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. As for UFCS, the dividend discount model StockNews created for the company implies a positive return of 3.67%. To help understand and contextualize the model's evaluation of UFCS, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, United Fire Group Inc's dividend yield of 5.65% is in the top 14.25%.
• 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 24.64% of them.

UFCS Dividends vs. Peers