Equity Valuation
The Dividend Discount Model (DDM) is a method used for valuing the price of a stock for a company which pays out dividends. The model assumes that the price of a stock is equivalent to the sum of all of its future dividend payments discounted to the present value. The model is simple in theory but have various scenarios due to the different ways that dividends could be paid out. This spreadsheet allows you to value a stock using the Dividend Discount Model in the following scenarios:
Price of Stock with Zero Growth Dividends
Price of Stock with Constant Growth Dividends (Gordon Model)
Price of Stock at Time N with Contant Growth Dividends (Terminal Value)
Price of Stock with Two Stage Growth Dividends
Price of Stock with Non Constant Growth Dividends
Benefits
Unlocked
Allows removal of copyright message in the template
Allows commercial use within the company
Supports Price of Stock with Zero Growth Dividends
Supports Price of Stock with Constant Growth Dividends
Supports Price of Stock at Time N with Contant Growth Dividends (Terminal Value)
Supports Price of Stock with Two Stage Growth Dividends
Supports Price of Stock with Non Constant Growth Dividends
Full source code
Limited Time Bonus
Free Visual Basic for Applications Training worth USD$30 (Over 100 pages!)