dividend discount model
noun[C]
ukusFINANCE
amethodused fordecidingwhat thesellingpriceof a company'ssharesshould be, byconsideringpossiblefuturedividendsand whattheirvalueshould becalculatedas at thetimeofselling:
Thedividenddiscountmodelcan be ausefultoolforequityvaluation.