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  2. Dividend discount model - Wikipedia

    en.wikipedia.org/wiki/Dividend_discount_model

    In financial economics, the dividend discount model (DDM) is a method of valuing the price of a company's capital stock or business value based on the assertion that intrinsic value is determined by the sum of future cash flows from dividend payments to shareholders, discounted back to their present value.

  3. Sum of perpetuities method - Wikipedia

    en.wikipedia.org/wiki/Sum_of_Perpetuities_Method

    SPM is an alternative to the Gordon growth model (GGM) [2] and can be applied to business or stock valuation if the business is assumed to have constant earnings and/or dividend growth. The variables are: is the value of the stock or business

  4. Stock duration - Wikipedia

    en.wikipedia.org/wiki/Stock_duration

    The present value or value, i.e., the hypothetical fair price of a stock according to the Dividend Discount Model, is the sum of the present values of all its dividends in perpetuity. The simplest version of the model assumes constant growth, constant discount rate and constant dividend yield in perpetuity. Then the present value of the stock is

  5. How To Calculate Dividend Yield and Why It Matters - AOL

    www.aol.com/calculate-dividend-yield-why-matters...

    To calculate a stock’s dividend yield, take the company’s total expected payout over the course of a year and divide that by the current stock price. The mathematical formula is as follows:

  6. How to Calculate Your Dividend Payout Ratio - AOL

    www.aol.com/news/calculate-dividend-payout-ratio...

    The dividend payout ratio can be a helpful metric for comparing dividend stocks. This ratio represents the amount of net income that a company pays out to shareholders in the form of dividends.

  7. Stock valuation - Wikipedia

    en.wikipedia.org/wiki/Stock_valuation

    The Gordon model or Gordon's growth model [11] is the best known of a class of discounted dividend models. It assumes that dividends will increase at a constant growth rate (less than the discount rate) forever. The valuation is given by the formula:

  8. Earnings growth - Wikipedia

    en.wikipedia.org/wiki/Earnings_growth

    When the dividend payout ratio is the same, the dividend growth rate is equal to the earnings growth rate. Earnings growth rate is a key value that is needed when the Discounted cash flow model, or the Gordon's model is used for stock valuation. The present value is given by:

  9. Terminal value (finance) - Wikipedia

    en.wikipedia.org/wiki/Terminal_value_(finance)

    The Perpetuity Growth Model accounts for the value of free cash flows that continue growing at an assumed constant rate in perpetuity. Here, the projected free cash flow in the first year beyond the projection horizon (N+1) is used. This value is then divided by the discount rate minus the assumed perpetuity growth rate: