DDM (1)
The ISO 4217 currency code for former East Germany Ostmark.
DDM (2)
DDM
1. Discounted dividend model. A formula for determining the projected return on a stock by estimating the present value of future dividends. One compares the discounted dividend return to the current stock price, and, if the former is higher, it indicates that the stock is undervalued. More than one DDM is used to calculate the dividend discount return, but it is important to note that they all assume that the stock will in fact pay dividends, which may not always be the case.
2. ISO 4217 code for the East German mark. It was in use between 1948 and 1990, when it was theoretically pegged to the (West German) deutschemark at par, but it was largely inconvertible. After German reunification in 1990, the deutschemark replaced the East German mark.
2. ISO 4217 code for the East German mark. It was in use between 1948 and 1990, when it was theoretically pegged to the (West German) deutschemark at par, but it was largely inconvertible. After German reunification in 1990, the deutschemark replaced the East German mark.
Dividend Discount Model (DDM)
What Does Dividend Discount Model (DDM) Mean?
A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value; if the value obtained from the DDM is higher than what the shares are currently trading at, the stock is undervalued.
Investopedia explains Dividend Discount Model (DDM)
This procedure has many variations, but it will not work for companies that do not pay out dividends.
Related Terms:
• Discount Rate
• Dividend
• Dividend Payout Ratio
• Dividend Yield
• Gordon Growth Model
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