The dividend discount model (DDM) is one of the basic applications of financial theory. The theory is easy to grasp: A stock is worth its price if that price is less than the net present value of its ...
Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. David Kindness is a Certified Public Accountant (CPA) and an expert in the ...
The projected fair value for Xcel Energy is US$72.16 based on Dividend Discount Model Current share price of US$73.47 suggests Xcel Energy is potentially trading close to its fair value Analyst price ...
Dividend discount model (DDM) evaluates stock based on future dividends, using cost of capital and growth rate. Most common DDM, the Gordon Growth Model, calculates intrinsic stock value by dividing ...