dividend discount model

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  • 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 discount model — ( DDM) A method to value the common stock of a company that is based on the present value of the expected future dividends. Bloomberg Financial Dictionary * * *    ► See DDM. * * * dividend discount model UK US noun [C] ► …   Financial and business terms

  • Dividend Discount Model - DDM — A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is… …   Investment dictionary

  • Dividend discount model (DDM) — A model for valuing the common stock of a company, based on the present value of the expected cash flows. The New York Times Financial Glossary …   Financial and business terms

  • Multistage Dividend Discount Model — An equity valuation model that builds on the Gordon growth model by applying varying growth rates to the calculation. Under the multistage model, changing growth rates are applied to different time periods. Various versions of the multistage… …   Investment dictionary

  • 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

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

  • Dividend — This article is about financial dividends. For dividends in arithmetic, see Division (mathematics). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis  …   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

  • 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


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