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  2. Dividend discount model - Wikipedia

    en.wikipedia.org/wiki/Dividend_discount_model

    The dividend discount model does not include projected cash flow from the sale of the stock at the end of the investment time horizon. A related approach, known as a discounted cash flow analysis , can be used to calculate the intrinsic value of a stock including both expected future dividends and the expected sale price at the end of the ...

  3. Residual income valuation - Wikipedia

    en.wikipedia.org/wiki/Residual_income_valuation

    As can be seen, the residual income valuation formula is similar to the dividend discount model (DDM) (and to other discounted cash flow (DCF) valuation models), substituting future residual earnings for dividend (or free cash) payments (and the cost of equity for the weighted average cost of capital).

  4. Valuation using discounted cash flows - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_discounted...

    Basic formula for firm valuation using DCF model [ edit ] Flowchart for a typical DCF valuation, with each step detailed in the text (click on image to see at full size) Spreadsheet valuation, using free cash flows to estimate the stock's fair value , and displaying sensitivity to WACC and perpetuity growth (click on image to see at full size)

  5. Discounted cash flow - Wikipedia

    en.wikipedia.org/wiki/Discounted_cash_flow

    However the assumptions used in the appraisal (especially the equity discount rate and the projection of the cash flows to be achieved) are likely to be at least as important as the precise model used. Both the income stream selected and the associated cost of capital model determine the valuation result obtained with each method. (This is one ...

  6. Dividend policy - Wikipedia

    en.wikipedia.org/wiki/Dividend_policy

    The Modigliani–Miller theorem states that dividend policy does not influence the value of the firm. [4] The theory, more generally, is framed in the context of capital structure, and states that — in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market — the enterprise value of a firm is unaffected by how that firm is financed: i.e ...

  7. Stock duration - Wikipedia

    en.wikipedia.org/wiki/Stock_duration

    In the Discounted Cash Flow Model (DCFM) of security analysis, the value of a security is the present value of all its future cash flows including interest or dividends and the implied cash flow of the residual value of the security itself, if any. A special case of the DCFM, based on a stock's dividend, is called the Dividend Discount Model.

  8. Dividend payout ratio - Wikipedia

    en.wikipedia.org/wiki/Dividend_payout_ratio

    The dividend payout ratio is calculated as DPS/EPS. According to Financial Accounting by Walter T. Harrison, the calculation for the payout ratio is as follows: Payout Ratio = (Dividends - Preferred Stock Dividends)/Net Income. The dividend yield is given by earnings yield times the dividend payout ratio:

  9. Outline of finance - Wikipedia

    en.wikipedia.org/wiki/Outline_of_finance

    Walter model; Gordon model; Lintner model; Residuals theory; Signaling hypothesis; Clientele effect; Dividend puzzle; Treasury stock § Buying back shares; Dividend tax; Capital budgeting (valuation) Corporate finance § Investment and project valuation; Clean surplus accounting; Residual income valuation; Economic value added / Market value ...