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Digging Into the Dividend Discount Model
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 ...
DDM values stocks based on sum of all future dividends using a company's cost of capital. Most common DDM, the Gordon Growth Model, calculates stock price by dividing next year’s expected dividend by ...
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 ...
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