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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). Otherwise, the written version follows: Why Use a Dividend Discount Model? If you sum up these numbers, you can see whether the company is valued appropriately.

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Corporate Finance Jobs: Cozy Careers, But Bad “Plan B” Options

Brian DeChesare

Corporate finance is fine if you’re in it to advance up the ladder over many years/decades while having a reasonable work/life balance. based roles will start in the $70 – $90K range and advance to the $200 – $250K range at the Director level. Can we speed up the data consolidation processes? Your total compensation in U.S.-based

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Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version.

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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

My version of the corporate life cycle is built around six stages with the first stage being an idea business (a start-up) and the last one representing decline and demise. Even a cursory glance at the companies that surround you should tell you that there are wide variations across companies, on these dimensions.

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2023 Investment and Market Updates: A Review of the Worst Year Since 1871

Brian DeChesare

In March, the Fed finally started hiking rates, and in May and June, the pace accelerated; the federal funds rate ended the year in the 4.25% – 4.50% range, the highest level since 2007. Here it is as of January 3 rd , with differences vs. the start of 2022 in brackets: Equities: 31% [Down 7%]. Treasuries: 19% [Up 19%].

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Data Update 2 for 2023: A Rocky Year for Equities!

Musings on Markets

I will follow up by looking at the mechanics that connect stock prices to inflation, and examine why the damage from higher inflation can vary across companies and sectors. The first is the dividends you receive, while you hold stocks, a cash flow stream that provides a measure of stability to investors who seek it. Stocks: The What?

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A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.