Reviewed by Margaret James The dividend discount model (DDM) is one of the basic applications of financial theory. The theory is easy to grasp: A stock is worth its price if that price is less ...

The Dividend Discount Model is an easy three step method to value a company. This model is great for stable, dividend paying stocks.

There is a common mistake most investors make: they study the dividend discount model with great caution and then use it as a valuation tool.

The dividend discount model builds from this to argue that the value of a stock should therefore be the present value of all its expected dividends over time.

The dividend discount model doesn’t require current stock market conditions to be considered when finding the value of a stock. Again, the emphasis is on future dividend growth.

It's a simple version of the dividend discount model, meant to apply to mature companies at which the dividend can be expected to grow at a steady rate, from here to eternity.

As the title suggests, authors Stephen Horan, Robert R. Johnson and Thomas Robinson explored the use of present value, which can be computed by using dividend discount or discounted cash flow models.

A financial model that estimates whether shares are undervalued or overvalued. It uses the present value of the predicted future dividend payments of a given stock to estimate what the price ...

The CFA dividend discount model explained, offering insights into investment valuation strategies.

Gordon growth model is also known as dividend discount model calculates stock's intrinsic value which is a stock valuation based on future series of dividends that grow at a constant rate. Know ...