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 […]

Brookfield Infrastructure Partners (BIP) — Valuation Remains Attractive

Do you remember in 2012 when I estimated Brookfield Infrastructure Product’s (BIP) value and thought it was a good buy? In my last post I discussed how it worked out very well for investors who bought it back then. So, is it still a good investment in 2017? Yes, I believe so and this updated valuation shows why BIP […]