Talk:Dividend Discount Model
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Discussion invited!
I'm not sure whether much more could be said on this subject. The formulas are, afak, correct. The assumptions are enumerated, and the practical limitatiations arising from those assumptions are described.
In my experience (but I'm into bonds and macro economics, and try to stay away from equities as far as possible) the DDM is not used much in day-to-day equities portfolio management. Theoretically, it is no doubt quite sound, but reality as often as not refuses to behave according to the textbooks.;)
I think this article could be listed as "fit for pulication:, in the sense that it is, in its present form, correct as to facts and sufficiently complete.
Best regards, Martin van Dalen 13:38, 20 November 2006 (CST)