Dividend Discount Model - DDM

外汇网2021-06-19 15:59:36 171

A procedure for valuing the price of a stock by using pdicted pidends and discounting them back to psent 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 undervalued.

Taobiz explains Dividend Discount Model - DDM

This procedure has many variations, and it doesn't work for companies that don't pay out pidends.

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