dividend discount model

Also found in: Acronyms

0.02 sec.

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.

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.

How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link
Email

Feedback
Add definition

? Mentioned in

? References in periodicals archive

Attribute bias
Constant-growth model

Three-phase DDM

The dividend discount model values a stock price as the present value of the stock's future dividend stream, discounted by the current interest rate.

What Wall Street sees when it looks at your P/E ratio by Clemente, Holly A. / Financial Executive

com is a free online investment analysis tool that gives investors access to the popular Dividend Discount Model (DDM) to value publicly traded stocks.

DividendDiscountModel.com Wins Standard of Excellence Award; Site ... by Business Wire

The proxy for stocks is a dividend discount model that derives the expected return for the stock market from the stocks' estimated future dividend flow and from the current level of stock prices as reflected by the S&P 500.

Pro: tactical asset allocation: a sure-fire investment technique or ... by Knisley, Ralph L., Jr. / Financial Executive

More results

Financial browser

? Full browser

Dividend
dividend adjustment
dividend capture
Dividend clawback
Dividend clientele
dividend coverage
Dividend Disbursing Agent
dividend discount model
Dividend Discount Return
Dividend distribution
dividend equivalent right
dividend exclusion
Dividend growth model
Dividend in arrears
Dividend income

Divided-light window
dividedly
dividedly
dividedness
dividedness
dividend
dividend
dividend
dividend
dividend
dividend
dividend
dividend
dividend adjustment
Dividend capture
dividend check

dividend checks
Dividend clawback
Dividend clientele
dividend cover
dividend coverage
dividend covers
Dividend Disbursing Agent
Dividend Disbursing Agent
dividend discount model
Dividend Discount Return
Dividend distribution
Dividend distribution tax
Dividend distribution tax
Dividend Equivalent
dividend equivalent right
Dividend Equivalent Rights
dividend exclusion

Dividend growth model
Dividend imputation
Dividend in arrears
Dividend income
Dividend Index of Europe, Far-East Asia, and Australasia
Dividend limitation
Dividend Miles
Dividend Order
dividend payable
dividend payment date
Dividend payout ratio
Dividend payout ratio
Dividend Per Share
Dividend policy
Dividend puzzle
Dividend rate

Financial Dictionary

Free Tools:	For surfers: Browser extension \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup \| Partner with us

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.