JPM Price Forecast Based on Dividend Discount Model
| Current Price | DDM Fair Value Target: | Forecasted Gain: |
| $181.25 | $131.15 | -6.17% |
A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Jpmorgan Chase & Co, the DDM model, as implemented by StockNews, implies a negative return of 6.17% relative to its current price. To help understand and contextualize the model's evaluation of JPM, investors may wish to consider are:
- JPM's market cap is about 415 billion US dollars -- its dividend yield of 2.86 is greater than 68% of its fellow stocks in the mega market cap class.
- With a market cap of roughly $415 billion, JPM is in the mega-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 34% of them.
- Beta tells us how volatile a stock's price is relative to the broader equity index; as for JPM, approximately 33.86% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
