The Dividend Discount Model (DDM): The Black Sheep of Valuation?
Mergers and Inquisitions
MAY 3, 2023
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). And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations.
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