The Dividend Discount Model with Multiple Growth Rates of Any Order for Stock Evaluation

Abdulnasser Hatemi-J and Youssef El-Khatib

Papers from arXiv.org

Abstract: In this paper we provide a general solution for the dividend discount model in order to compute the intrinsic value of a common stock that allows for multiple stage growth rates of any predetermined number of periods. A mathematical proof is provided for the suggested general solution. A numerical application is also presented. The solution introduced in this paper is expected to improve on the precision of stock valuation, which might be of fundamental importance for investors as well as financial institutions.

Date: 2018-02
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http://arxiv.org/pdf/1802.08987 Latest version (application/pdf)

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Journal Article: The Dividend Discount Model with Multiple Growth Rates of any Order for Stock Evaluation (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1802.08987

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