Dividend Discount Model’s Four Essential Steps

The Dividend Discount Model’s four essential steps are summarized below. The purpose is to provide a quick reference for this valuation, give an example, and offer a spreadsheet template to facilitate calculations and sensitivity analysis. We’ve covered how to value a business with a Constant Dividend Growth Rate and, with a Multi-Stage Dividend Growth Rate.  With […]

Dividend Discount Valuation Part 1

Price is what we pay and value is what we get. The only way we can invest in an intelligent and disciplined manner is to know the difference between the price and value. Today we venture into our first valuation model of this series, the Dividend Discount Valuation.  If you haven’t had a chance, read my introduction to valuation […]