MODIFICATIONS OF THE DIVIDEND DISCOUNT MODEL Cover Image

MODIFICATIONS OF THE DIVIDEND DISCOUNT MODEL
MODIFICATIONS OF THE DIVIDEND DISCOUNT MODEL

Author(s): Radim Gottwald
Subject(s): Financial Markets
Published by: Masarykova univerzita
Keywords: dividend discount model; intrinsic value of a stock; dividend policy;
Summary/Abstract: The paper focuses on different modifications of the dividend discount model, which is used to estimate the intrinsic value of a stock in the framework of the fundamental analysis. First of all, the intrinsic value of a stock is defined. Then the modifications of the dividend discount model, which depend on chosen dividend policy of stock corporation, are presented. Empirical researches which apply the modifications of the dividend discount model on realdata in practice are cited in the paper, too.