The Dividend Discount Model (DDM): The Black Sheep of Valuation?
Brian DeChesare
MAY 3, 2023
Step 4: Discount the Dividends and Terminal Value to Present Value and Add Them This is like the final step of a DCF, but you use the Cost of Equity since the Dividend Discount Model is based on Equity Value, not Enterprise Value. Note that there is no Equity Value to Enterprise Value bridge here.
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