Are There Any Deals Among The Dividend Challengers? Part IV Finale
INTRODUCTION
This is the second article where I use a four model valuation analysis to derive fair value estimates for the members of the dividend challengers from David Fish's Dividend Champion, Challenger and Contender list (available here). The previous articles of this series have covered:
Dividend champions (here) Dividend contenders Part I, Part II Dividend challengers Part I, Part II, Part III Commonly held dividend stocks (here) There are a total of 418 dividend challengers. The first, second and third articles covered the first 312 companies in alphabetical order by ticker symbol from the CCC list. This article covers the next 106 dividend challengers.
For those of you who are new to this series, the valuation models are described below.
THE VALUATION MODELS
DISCOUNTED CASH FLOW VALUATION
Discounted cash flow [DCF] is the most commonly known valuation tool. The DCF is a valuation model used to estimate the attractiveness of an investment opportunity. Discounted cash flow analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment.
In short, the DCF is cash flow based.
BENJAMIN GRAHAM VALUATION FORMULA
The Graham number measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay... Read more