How To Use Dividend Valuation Methods To Value A Stock

In today’s video, we learn about the four dividend valuation methods that can be used to value a publicly traded company. I also talk about using the capital asset pricing model (CAPM) to calculate the discount rate used in the dividend discount model.

- Dividend Discount Model (DDM)
- Constant Perpetual Growth Model
- Two-stage Growth Model
- Non-Constant Growth in First Stage

We go through four different examples and then I provide two homework examples for you to work on. Comment and share your answers below.

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