11 thoughts on “Stock Valuation Part 1: Dividend Discount Model

  1. Great video. One point though is that many prominent value investors argue for the use for the use of EPS instead of dividend. Saying that retained earnings contribute to increasing the price of the stock. So in essence, in their opinion, it is still cash inflow. 
    Price always follows EPS. It's not price always follows dividends.

  2. See Stock Valuation Part 2: Applications of the Dividend Discount Model for calculating terminal values and an example putting it all together.

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