How is the DDM used to value stocks?
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Dharmendra Jethwani
Skilled and Passionate stock market trainer with 24 years of experience in trading and investing
Dividend Discount Model (DDM) is methodology to value company's share (stock) basis addition (sum) of all future expected dividends that company will declare. The sum of all dividends is discounted using present value.
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Khalid
Professional Stocks and Forex trader with 4 years of experience.
The Dividend Discount Model (DDM) values stocks by estimating the present value of future dividend payments. It calculates the intrinsic value of a stock by discounting expected dividends back to their present value using a required rate of return or discount rate.
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