Dtm stock price despite market softness

Despite market softness, DTM stock price remains stable at $51. After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.1%. We discount the terminal cash flows to today's value at a cost of equity of 7.1%. On the other hand, the stock currently carries a Zacks Rank of #3. With DTM stock price hitting $52.12, market watchers attribute gains to renewed investor focus on defensive energy plays amid inflation concerns. Yield stability and low beta characteristics appeal to conservative portfolios.