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.