Stock Valuation Theory - Dividend Discount Model (Part 1 of 2)

[@KingMalikKYH]

how does this not have more comments and more views?! thank you Dr. Greene!

[@mariusmadou235]

Fantastic! Crystal clear and life saving video. You have unlocked the mystery of the DDM. Do you have a video on CAPM beta? Many thanks Professor.

[@Ezyhahaha]

perfect! exactly what I needed. Thank you Dr Greene

[@SuperGrey95]

Thank you so much for making this concept easy to understand! Best Video equity valuation !

[@jchen728]

Very intuitive explanation, thank you so much

[@sahil99farm]

Neat and Simple. Much thanks.

[@chuangtian3683]

So great, I hope you will make more.

[@rendallharper633]

Thanks you Dr. Greene!

[@edcfyau]

this is great stuff. more please

[@devanshkothari303]

Amazing video

[@DevedMarqoz]

i have just one quastion. what happens with the sell price in the future why does it "dissapear" ?

[@sahil99farm]

It doesn't disappear. Look carefully. The SP in Year T will be the PV of the dividends received in the years following Year T. So ultimately all we have is dividend.

[@chaitalishah9106]

nyc video bt i have a question. Y dont u take years into consideration....plz help me understand the PV of perpetuity theory. Also in constant dividend, why the growth rates are also constant.Is it sum kind of assumption?? Doesn't sound practically right when assuming the value of the stock

[@mariajauslin1107]

but k is also a growth right? i mean when you discount it by k, this means that it has grown by k.

[@Cherrybomb999999]

thx , awesome

[@elliotwas7007]

What is 'k' in the formula?

[@claudiangcw]

discount rate

[@jacobg9690]

its the WACC.

[@rahuluppal7371]

I don't think the conclusion about k is correct in the lecture. As you said "k" is some kind of risk factor. But i would contradict and say that "k" is the rate of return, and for higher value of "k' company is more valuable as we can say that for the same divident (D), one has to invest less amount initially (PV) when "k" is higher i.e rate of return is higher. Anyone agrees with me?

[@jacobg9690]

K is just the WACC. so the higher the WACC the worse off the stock is.

[@eagle_8990]

@@jacobg9690 nope, k is rE or rD in this model (equity/debt cost of capital) When you are analyzing a business instead of one single stock it indeed is the rWACC.

[@rehabzaidalzahrani1976]

can i borrow ur mind for couple hours

[@zevza]

Oh man, youre the MAN!!