Dividend Discount Model financial definition of Dividend Discount Model. Dividend Discount Model finance term by the Free Online Dictionary.

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.

Dividend Discount Model

An estimate of what the price per share of a stock or other security should be, based on the present value of future dividends. This estimate allows investors to determine whether the stock is undervalued or overvalued. If the model says the stock should cost more than it does, investors often buy it. Likewise, if the real cost is higher than the estimate, the investor is likely to sell or refrain from buying.

dividend discount model

A model used to determine the price at which a security should sell based on the discounted value of estimated future dividend payments. Dividend discount models are used to determine if a security is a good buy, such as one that sells at a lower current price than the model would indicate, or a bad buy, such as one that sells at a higher current price than the model would indicate.

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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Attribute Bias Constant-growth model DDM Dividend Free Cash Flow to Equity Gordon Growth Model Three-Phase DDM	This is supported by the top quintile rankings on a global and regional basis in our dividend discount model. Strong performance from core portfolio; SHARE WATCH by The Journal (Newcastle, England) Based on combination of Dividend Discount Model and Gordon Growth Model valuation method we downgrade from our previous recommendation of "BUY" to "HOLD" rating on the stock with a price target of AED1. Global values Commercial Bank International at AED1.33 and recommends ... by Albawaba.com It is also in the context of this chapter that Shapiro compares alternative DCF approaches, in particular the entity/equity method, the adjusted present value (APV) method, the levered equity (LE) method as well as the dividend discount model (in the appendix) as a rationality check for CAPM-based estimates. Biblio service by Management International Review	Diversify Diversity Score Diversity Segmentation Divestiture Divida Divida a curto prazo Divida a longo prazo Divida com bancos Divida consolidada Divida externa Divida flutuante Divida garantida Divida incobravel Divida privilegiada Divida subjacente Divida subordinada Divided Account divided interest Dividend Dividend Adjustment Dividend Capture Dividend Clawback Dividend Clientele Dividend Coverage Dividend Disbursing Agent Dividend Discount Model Dividend Discount Return Dividend Distribution Dividend Enhanced Convertible Stock Dividend Equivalent Right Dividend Exclusion Dividend growth model Dividend Imputation Dividend in Arrears Dividend Income Dividend Limitation Dividend Order Dividend Payable Dividend Paying Agent Dividend Payment Date Dividend Payout Ratio Dividend per Share Dividend Period Dividend Policy Dividend rate Dividend Record Dividend Reinvestment Plan Dividend Requirement Dividend Right Dividend Rights Dividend Rollover Plan	Divided-light window Divided-light window dividedly dividedly dividedly dividedness dividedness dividedness dividend dividend dividend dividend dividend dividend dividend adjustment Dividend Adjustments Dividend Arrears Dividend capture dividend check dividend checks Dividend clawback Dividend Clawbacks Dividend clientele dividend coupon dividend cover dividend coverage dividend covers Dividend Disbursing Agent Dividend Disbursing Agent Dividend Disbursing Agents Dividend Discount Model Dividend Discount Return Dividend Discount Returns Dividend distribution Dividend distribution tax Dividend Distributions Dividend Enhanced Convertible Stock Dividend Enhanced Convertible Stocks Dividend Equivalent dividend equivalent right Dividend Equivalent Rights Dividend Equivalent Rights dividend exclusion Dividend Exclusions Dividend growth model Dividend growth model Dividend imputation Dividend Imputations Dividend in arrears Dividend income Dividend Incomes Dividend Index of Europe, Far-East Asia, and Australasia Dividend limitation Dividend Limitations Dividend Order Dividend Orders dividend payable

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Attribute Bias
Constant-growth model
DDM
Dividend
Free Cash Flow to Equity
Gordon Growth Model
Three-Phase DDM

This is supported by the top quintile rankings on a global and regional basis in our dividend discount model.

Strong performance from core portfolio; SHARE WATCH by The Journal (Newcastle, England)

Based on combination of Dividend Discount Model and Gordon Growth Model valuation method we downgrade from our previous recommendation of "BUY" to "HOLD" rating on the stock with a price target of AED1.

Global values Commercial Bank International at AED1.33 and recommends ... by Albawaba.com

It is also in the context of this chapter that Shapiro compares alternative DCF approaches, in particular the entity/equity method, the adjusted present value (APV) method, the levered equity (LE) method as well as the dividend discount model (in the appendix) as a rationality check for CAPM-based estimates.

Biblio service by Management International Review

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