WTS 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. In the case of WTS, the dividend discount model StockNews created for the company implies a negative return of 80.62%. Digging deeper, the aspects of Watts Water Technologies Inc's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, Watts Water Technologies Inc's dividend yield of 0.79% is in the bottom 11.36%.
• Watts Water Technologies Inc has annual revenue of approximately $2 billion; this puts it in the small-sized revenue class -- where its dividend growth rate surpasses that of 37.26% of US-listed, dividend-issuing stocks in the same revenue class.
• In terms of opportunity, WTS's provides a return of -80.62% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 9.3% of all stocks we measured with our dividend discount model.

WTS Dividends vs. Peers