WM 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. As for WM, the dividend discount model StockNews created for the company implies a negative return of 14.61%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Waste Management Inc are:

• In comparison to other US listed dividend yielding stocks in the Industrials sector, Waste Management Inc's expected return of -14.61% is higher than 79.45% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Waste Management Inc bears a discount rate, according to our calculations, lower than 79.45% 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 Waste Management Inc than it is for 80.37% of other dividend issuers in the Industrials sector.

WM Dividends vs. Peers