The DDM (Dividend Discount Model) is a stock valuation method using the present value of future cash flows (such as dividends).
Dividend Discount Model = Dividends per Share / (Discount Rate – Dividend Growth Rate)
- The Motley Fool – What is the Dividend Discount Model? – The formula for dividend discount model and some example calculations.
- Wikipedia – Dividend discount model – The formula for dividend discount model and how it is calculated.
- Wall Street Mojo – Dividend Discount Model – Complete Beginners Guide – An explanation for how to use the dividend discount model.
- Investopedia – Dividend Discount Model – DDM – A full explanation of the dividend discount model.