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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.