The market price of a stock doesn't necessarily reflect its intrinsic value. Several economic theories use different approaches toward valuing companies, but one of the simplest involves calculations ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Jiwon Ma is a fact checker and research analyst with a background in ...

How do you value a stock? Well, there are many ways. And every method and model has its strengths and weaknesses. One of the very first models that any entry-level analyst will learn is the dividend ...

DDM values stocks based on sum of all future dividends using a company's cost of capital. Most common DDM, the Gordon Growth Model, calculates stock price by dividing next year’s expected dividend by ...

Hedge funds and financial analysts typically use a variety of approaches to determine the intrinsic value of shares. With that being said, the Gordon Growth Model is a subcategory of a larger group of ...