WWE 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 WWE, the dividend discount model StockNews created for the company implies a negative return of 60.97%. Digging deeper, the aspects of World Wrestling Entertainment Inc's dividend discount model that we found most interesting were:

• WWE generates about 1 billion US dollars in revenue annually; in terms of how this translates into revenue, it has a dividend yield higher than merely 17.17% of companies in the small revenue class.
• Compared to other dividend issuers in the mid-sized market cap category, WWE's beta -- a measure of volatility relative to the market at large -- is lower than 81.4% of them.
• Based on dividend growth rate, WWE boasts a higher growth rate in terms of its annual cash distributed to its owners than merely 14.58% of the dividend issuers in our set.

WWE Dividends vs. Peers