UVSP 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 UVSP, the DDM model generated by StockNews estimates a return of negative 2.75% in comparison to its current price. To help understand and contextualize the model's evaluation of UVSP, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, UNIVEST FINANCIAL Corp's dividend yield of 4.17% is in the top 23.66%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of -2.75%, based on the stock's current share price and target price based on a dividend discount model, is greater than 66.73% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, UNIVEST FINANCIAL Corp bears a discount rate, according to our calculations, lower than 66.73% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for UNIVEST FINANCIAL Corp than it is for 64.57% of other dividend issuers in the Financial Services sector.

UVSP Dividends vs. Peers