The Dividend Discount Model (DDM): The Black Sheep of Valuation?
Mergers and Inquisitions
MAY 3, 2023
In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time. Also, the Terminal Value is normally based on a P / E multiple or a Net Income Growth Rate. Otherwise, the written version follows: Why Use a Dividend Discount Model?
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