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 dividend discount model StockNews created for the company implies a positive return of 19.24%. Digging deeper, the aspects of UNIVEST FINANCIAL Corp's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, UNIVEST FINANCIAL Corp's dividend yield of 4.96% is in the top 23.9%.
• 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 19.24%, based on the stock's current share price and target price based on a dividend discount model, is greater than 73.9% 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 73.9% 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 UVSP than it is for 64.72% of other equities in the Financial Services sector that also issue dividends.

UVSP Dividends vs. Peers