Skip to main content

learn.howToCalculate

learn.whatIsHeading

Dividend Discount Model values stock as present value of all future dividends: P = D₁/(r-g) where D₁ is next dividend, r is return, g is growth.

चरण-दर-चरण मार्गदर्शिका

  1. 1Input next dividend, growth rate, required return
  2. 2Calculate intrinsic value
  3. 3Compare to market price for investment decision

हल किए गए उदाहरण

इनपुट
Dividend $2, growth 5%, required return 10%
परिणाम
Intrinsic value = $2 / (0.10-0.05) = $40
Highly sensitive to assumptions

सामान्य गलतियां जिनसे बचना है

  • Using inappropriate growth rate
  • Assuming growth perpetual (unrealistic)
  • Neglecting terminal value

अक्सर पूछे जाने वाले प्रश्न

Does DDM work for non-dividend stocks?

Not directly; requires expected future dividends or assumes buyback equivalent.

सेटिंग्स