Three-phase DDM

(redirected from 3-Phase Dividend Discount Model)

Three-phase DDM

A version of the that applies a different expected depending on a company's life-cycle phase: growth phase, transition phase, or maturity phase.

Three-Phase DDM

A form of the dividend discount model that divides a company into three phases. A dividend discount model is a calculation of the value of a publicly-traded company's common stock based on the present value of its future dividends. The three-phase DDM assumes that a company's dividend policy is determined by one of three phases: a growth phase, a transition phase, and a maturity phase. The company's goals differ in each phase and its dividend policy changes accordingly. The three-phase DDM attempts to account for this in its calculation.