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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). Otherwise, the written version follows: Why Use a Dividend Discount Model? If you sum up these numbers, you can see whether the company is valued appropriately.

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29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Uncover the intricacies of financial modeling, from understanding fundamental concepts like Free Cash Flow to Firm and Dividend Discount Model, to navigating advanced methodologies such as LBO and DCF. It provides a clearer picture of a company's ability to reward its shareholders with dividends or share buybacks.

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Issues faced when valuing a declining company

Andrew Stolz

In reference to Aswath Damodaran’s book “The Dark Side of Valuation Valuing Young Distressed and Complex Businesses,” it mentions that a declining company usually possesses the following five characteristics: (1) Stagnant or declining revenue. (2) 4) Big payouts – dividends and stock buyback. (5) 3) Asset divestitures. (4)

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Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

If Midstream companies want to grow beyond the fee increases written into their contracts and possible volume growth, they need to spend on Growth CapEx and estimate the incremental EBITDA from that spending: Further adding to the complexity is the GP (General Partner) / LP (Limited Partner) structure used at most MLPs.

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