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Key Methods for Accurate Valuation of Shares

RNC

Dividend Discount Model (DDM) The dividend discount model (DDM) provides a structured approach to the valuation of shares. This model estimates the present value of future dividends an investor expects to receive from owning the stock. A higher yield suggests an attractive income investment.

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Company Valuation Methods—Complete List and Guide

Valutico

There are three primary approaches under which most valuation methods sit, which include the income approach, market approach, and asset-based approach. The income approach estimates value based on future earnings, using techniques like the discounted cash flow analysis.