discounted dividend model

Fin
a method of calculating a stock’s value by reducing future dividends to the present value. [m1]Also known as dividend discount model

The ultimate business dictionary. 2015.

Look at other dictionaries:

  • discounted dividend model — ( DDM) A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. Bloomberg Financial Dictionary …   Financial and business terms

  • Discounted dividend model (DDM) — A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. The New York Times Financial Glossary …   Financial and business terms

  • dividend discount model — Fin see discounted dividend model …   The ultimate business dictionary

  • Dividend policy — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Dividend discount model — The dividend discount model is a way of valuing a company based on the theory that a stock is worth the discounted sum of all of its future dividend payments.[1] In other words, it is used to evaluate stocks based on the net present value of the… …   Wikipedia

  • Dividend Growth Rate — The annualized percentage rate of growth that a particular stock s dividend undergoes over a period of time. The time period included in the analysis can be of any interval desired, and is calculated by using the least squares method, or by… …   Investment dictionary

  • Gordon model — The Gordon growth model is a variant of the discounted cash flow model, a method for valuing a stock or business. Often used to provide difficult to resolve valuation issues for litigation, tax planning, and business transactions that don t have… …   Wikipedia

  • Binomial options pricing model — BOPM redirects here; for other uses see BOPM (disambiguation). In finance, the binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and… …   Wikipedia

  • Supernormal Dividend Growth — A period of time in which the dividends issued on shares of a stock are inceasing at a higher than average rate. The high growth rate of payouts are seen as above normal, thus supernormal . Because this rate is also expected to be unsustainable,… …   Investment dictionary

  • Stock valuation — There are several methods used to value companies and their stocks. They attempt to give an estimate of their fair value, by using fundamental economic criteria. This theoretical valuation has to be perfected with market criteria, as the final… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.