| 释义 |
Dividend Discount Model
Dividend Discount Model (DDM)A method to value the common stock of a company that is based on the present value of the expected future dividends.Dividend Discount ModelAn estimate of what the price per share of a stock or other security should be, based on the present value of future dividends. This estimate allows investors to determine whether the stock is undervalued or overvalued. If the model says the stock should cost more than it does, investors often buy it. Likewise, if the real cost is higher than the estimate, the investor is likely to sell or refrain from buying.dividend discount model A model used to determine the price at which a security should sell based on the discounted value of estimated future dividend payments. Dividend discount models are used to determine if a security is a good buy, such as one that sells at a lower current price than the model would indicate, or a bad buy, such as one that sells at a higher current price than the model would indicate.AcronymsSeeDDM |