WPP 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. In the case of WPP, the dividend discount model StockNews created for the company implies a positive return of 99.34%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for WPP plc are:

• Relative to all dividend yielding stocks in our set, WPP plc produces a dividend yield 11.75% -- which falls in the top 3.97%.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, WPP plc's expected return of 99.34% is higher than 92.31% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, WPP plc bears a discount rate, according to our calculations, lower than 92.31% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Amongst its dividend-issuing peers in the large-sized market cap category, WPP has a beta lower than merely 23.76% of them.

WPP Dividends vs. Peers