UTL Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for UTL, the DDM model generated by StockNews estimates a return of negative 20.56% in comparison to its current price. To help understand and contextualize the model's evaluation of UTL, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of -20.56%, based on the stock's current share price and target price based on a dividend discount model, is greater than 30.99% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, UTL has a discount rate lower than 30.99% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Unitil Corp has been increasing its dividends at a faster rate than merely 24.07% of US-listed dividend-issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Utilities sector, Unitil Corp has an equity discount rate lower than merely 18.31% of them.

UTL Dividends vs. Peers