WTBA 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 WTBA, the dividend discount model StockNews created for the company implies a positive return of 16.01%. Digging deeper, the aspects of West Bancorporation Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, West Bancorporation Inc's dividend yield of 4.35% is in the top 20.06%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, West Bancorporation Inc's expected return of 16.01% is higher than 76.92% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, WTBA has a discount rate lower than 76.92% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for WTBA than it is for 75.74% of other equities in the Financial Services sector that also issue dividends.

WTBA Dividends vs. Peers