VNOM 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. In the case of VNOM, the DDM model, as implemented by StockNews, implies a positive return of 41.31% relative to its current price. Digging deeper, the aspects of Viper Energy Partners LP's dividend discount model that we found most interesting were:

• A stock's beta generally indicates its volatility relative to the broader equity market; for Viper Energy Partners LP, its beta is lower than 9.35% of dividend issuing stocks we observed.
• VNOM's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 83.2% of them.

VNOM Dividends vs. Peers