Brian DeChesare

MAY 3, 2023

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.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Valutico

AUGUST 30, 2023

It’s used in financial modeling and valuation to estimate the company’s long-term value. In particular, the Terminal Growth Rate is used in a DCF analysis to help calculate the Terminal Value. Different industries have varying Terminal Growth Rates based on growth potential and market maturity.

Terminal Value 98

Terminal Value Dividends Weighted Average Cost of Capital Discounted Cash Flow 98

Chris Mercer

AUGUST 1, 2022

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). Of these 244 transactions, only 24 involved companies that paid dividends, or less than 10% of the transactions.

Dividends 52

Dividends Appraisal Start-ups Marketability 52

Chris Mercer

JULY 15, 2022

The value of all remaining cash flows after the finite forecast period is captured in the terminal value, which is, effectively, a capitalization of earnings or cash flows at the end of the forecast period. These cash flows are discounted to the present at an appropriate discount rate and equity value is determined.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

Chris Mercer

MARCH 7, 2024

Expected economic benefits associated with the subject interest, which come from interim benefits (dividends or distributions) and a terminal cash flow when the investment is sold or liquidated. 3) Preferential dividend claims. (4) 5) The outlook for one-time and/or irregular dividends or distributions. (6)

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52

Chris Mercer

FEBRUARY 23, 2024

The Value of an Interest in a Business The value of an interest in a business is similarly defined by the expected cash flow to the interest , the expected growth in value of the interest over the expected holding period, and the expected terminal value of the interest at the end of the expected holding period.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Andrew Stolz

MAY 8, 2020

In reference to Aswath Damodaran’s book “The Dark Side of Valuation Valuing Young Distressed and Complex Businesses,” it mentions that a declining company usually possesses the following five characteristics: (1) Stagnant or declining revenue. (2) 4) Big payouts – dividends and stock buyback. (5) 3) Asset divestitures. (4)

Discounted Cash Flow 52

Discounted Cash Flow Weighted Average Cost of Capital Terminal Value Net Present Value 52