Hi, can anyone help me Understand the DDM or in other words, Dividend Discount Model?
That's a good question, thank you for asking! DDM, in simple words, refers to a theoretical way of evaluating a stock price in which the real value of the company will be determined after dividends are paid to the shareholders. In the market, if the DDM model calculated a lower price for a stock than the current market it means that the price is likely to rise, so investing in that company can be taken into consideration. For more information, you can watch this video. Good luck!