Dividends Enterprise Value Net Present Value Price to Earnings 
Andrew Stolz
AUGUST 6, 2020
Absolute valuation is calculated through the discounted dividend model (DDM) method and discounted cash flow (DCF) method where you only focus on the stock and look at its dividends, cash flow, and growth. Often companies don’t pay dividends every quarter or every year hence making their payouts irregular. D0 = D1 ÷ (r – g).
Class VI Partner
JULY 28, 2021
Discount Rate Discount Rate refers to the rate at which a stream of future cash flows is discounted to determine Net Present Value. Discounted Cash Flow Value Discounted Cash Flow Value refers to the calculation of a company’s Enterprise Value on the basis of its ability to generate free cash flow over time.
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