The Dividend Discount Model (DDM): The Black Sheep of Valuation?
Mergers and Inquisitions
MAY 3, 2023
To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation).
Let's personalize your content