WING 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 WING, the DDM model generated by StockNews estimates a return of negative 79.37% in comparison to its current price. Digging deeper, the aspects of Wingstop Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Wingstop Inc's dividend yield of 0.57% is in the bottom 2.53%.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of -79.37%, based on the stock's current share price and target price based on a dividend discount model, is greater than 3.37% of the DDM-forecasted return of its its sector peers.
• In comparison to other stocks in the small-sized revenue class, its discount rate is lower than that of 12.99% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• Compared to all dividend issuing stocks in our set, Wingstop Inc bears a discount rate, according to our calculations, lower than 3.37% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

WING Dividends vs. Peers