VST Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. As for VST, the dividend discount model StockNews created for the company implies a negative return of 10.09%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Vistra Corp are:

• VST's market cap is about 9 billion US dollars -- its dividend yield of 2.92 is greater than 64.49% of its fellow stocks in the large market cap class.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of -10.09%, based on the stock's current share price and target price based on a dividend discount model, is greater than 36.62% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Vistra Corp bears a discount rate, according to our calculations, lower than 36.62% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

VST Dividends vs. Peers