WBK 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 WBK, the dividend discount model StockNews created for the company implies a negative return of 22.98%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Westpac Banking Corp are:

• Westpac Banking Corp's market cap of $55 billion US dollars puts it in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than just 23.03% of them.
• Compared to other dividend issuers in the large-sized market cap category, WBK's beta -- a measure of volatility relative to the market at large -- is lower than just 23.03% of them.
• Based on dividend growth rate, WBK boasts a higher growth rate in terms of its annual cash distributed to its owners than 6.26% of the dividend issuers in our set.

WBK Dividends vs. Peers