dividend discount model การใช้

• The dividend discount model is closely related to both discounted earnings and discounted cashflow models.
• Also, in the dividend discount model, a company that does not pay dividends is worth nothing.
• He then uses a dividend discount model to arrive at the per-share value of the company's projected earnings in two and a half years, in today's dollars.
• To value profitable companies that make actual products, he uses a conventional dividend discount model, projecting the company's future earnings and then discounting them back by using long-term bond rates.
• A Dividend discount model ( DDM ) may also be used to value a company's stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value.
• Another example is the constant growth Dividend Discount Model for the valuation of the common stock of a corporation, which assumes that the market price per share is equal to the discounted stream of all future dividends, which is assumed to be perpetual.
• While many value investors pick stocks using a statistical screen _ juggling price-to-earnings ratios, book values, dividend discount models and other measures _ Levy and Cohen concentrate on finding dynamic changes within a company that can create value and spur increases in cash flow.
• However, if the future dividends represent a perpetuity increasing at 5.00 % per year, then the dividend discount model, in effect, subtracts 5.00 % off the discount rate of 12.50 % for 7.50 % implying that the price per dollar of income is $ 13.33.
• Still, it has advantages over commonly used fundamental valuation techniques such as price earnings or the simplified dividend discount model : it is mathematically complete, and each connection between company fundamentals and stock performance is explicit, so that the user can see where simplifying assumptions have been made.