We may earn an affiliate commission when you visit our partners.
Course image
Bekhruzbek Ochilov, MCSI, PAGRC

In this 1-hour long project-based course, you will learn how to find dividend growth rate and cost of equity, and use that to find the fair price of a share. This will teach you how to value stocks using Dividend Discount Model (DDM) - one of the most common methods equity research analysts use to value stocks.

Note: This course works best for learners who are based in the North America region. We're currently working on providing the same experience in other regions.

Read more

In this 1-hour long project-based course, you will learn how to find dividend growth rate and cost of equity, and use that to find the fair price of a share. This will teach you how to value stocks using Dividend Discount Model (DDM) - one of the most common methods equity research analysts use to value stocks.

Note: This course works best for learners who are based in the North America region. We're currently working on providing the same experience in other regions.

This course's content is not intended to be investment advice and does not constitute an offer to perform any operations in the regulated or unregulated financial market.

Enroll now

What's inside

Syllabus

Stock Valuation with Dividend Discount Model
Now you will learn how to find dividend growth rate and cost of equity, and use that to find the fair price of a share. This will teach you how to value stocks using Dividend Discount Model (DDM) - one of the most common methods equity research analysts use to value stocks.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Fits seasoned investors
Develops valuation skills using the industry standard Dividend Discount Model (DDM)
Meets North America region standards and requirements

Save this course

Save Stock Valuation with Dividend Discount Model to your list so you can find it easily later:
Save

Reviews summary

Dividend model valuation basics

According to students, learners describe the content as being a good introduction to dividend discount modeling. The course provides practical knowledge with a strong basis. Although some complaints about complexity exist, most find the material to be engaging and easy to follow.
Provides a good amount of real-world examples.
"Good short term course with practical knowledge"
"Great project and easy to follow."
Content is clear and simple.
"Easy to follow."
"E​s gab die Gelegenheit, den Dividendenrabatt Modell in Praxis mitzubekommen, seine Anwendbarkeit, samt ihrer Grenzen, kennenzulernen und als Vorbereitung auf das Quiz einige mit dem Modell zusammenhängende Parameter genauer zu betrachten."
Helpful introduction to dividend models.
"Good introduction to the topic"
"Provides a good foundation and introduction to the dividend discount model."
Some learners believe the material might be too complex.
"Too simplistic of a model perhaps."
"It was a little underwhelming, and I was expecting a bit more core explanation for the applications."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Stock Valuation with Dividend Discount Model with these activities:
Create a Course Summary
Enhance your retention by creating a concise summary of the key concepts and formulas covered in the course.
Show steps
  • Review course materials, including lectures, notes, and assignments.
  • Identify and extract the most important concepts and formulas.
  • Organize and present the information in a clear and logical manner.
Attend Virtual Study Sessions
Connect with classmates to discuss concepts, share insights, and reinforce your understanding of the course material.
Show steps
  • Join or create a virtual study group.
  • Actively participate in discussions and ask questions.
  • Collaborate on problem-solving and case studies.
Learn to Use Dividend Discount Model (DDM) Calculator
Enhance your comprehension of DDM by exploring tutorials that demonstrate its practical application.
Show steps
  • Identify reputable online resources or platforms offering DDM calculator tutorials.
  • Follow the tutorials step-by-step, inputting relevant company data.
  • Analyze the results and compare them to industry benchmarks.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Solve DDM Practice Problems
Solidify your understanding of DDM by solving practice problems that cover various scenarios and complexities.
Show steps
  • Access online platforms or textbooks that provide DDM practice problems.
  • Attempt to solve the problems independently, using the formulas and concepts learned in the course.
  • Check your answers and identify areas for improvement.
Develop a Stock Valuation Model
Apply your knowledge by creating a customized stock valuation model that incorporates the concepts learned in the course.
Browse courses on Stock Valuation
Show steps
  • Choose a specific industry or sector to focus on.
  • Gather relevant financial data for multiple companies within the chosen industry.
  • Develop a valuation model using DDM or other appropriate methods.
  • Validate the model by comparing its results to actual market prices.
Analyze and Value a Real-World Company
Put your skills to the test by analyzing and valuing a publicly traded company using the DDM and other relevant methods.
Browse courses on Stock Valuation
Show steps
  • Select a company that interests you or aligns with your investment goals.
  • Gather comprehensive financial data for the company.
  • Apply DDM and other valuation techniques to determine the fair value of the company's stock.
  • Write a report summarizing your analysis and valuation.
Read `The Intelligent Investor`
Bolster your understanding of the fundamentals of investing and stock valuation by reading this classic book on value investing.
Show steps
  • Obtain a copy of the book.
  • Set aside dedicated time for reading.
  • Take notes and highlight key concepts.
  • Discuss the book's insights with peers or a mentor.
Contribute to a Stock Valuation Project
Make a meaningful contribution to the broader community by participating in an open-source project related to stock valuation.
Browse courses on Stock Valuation
Show steps
  • Identify an open-source project that aligns with your interests.
  • Review the project's documentation and codebase.
  • Identify an area where you can contribute your skills and knowledge.
  • Submit a pull request or issue with your proposed changes.

Career center

Learners who complete Stock Valuation with Dividend Discount Model will develop knowledge and skills that may be useful to these careers:
Equity Research Analyst
Equity Research Analysts evaluate stocks and other publicly traded companies, providing research reports and recommendations to investors. This course on Stock Valuation with Dividend Discount Model can be particularly helpful for Equity Research Analysts, as it provides a deep understanding of how to value stocks and identify undervalued opportunities.
Financial Analyst
Financial Analysts help companies, institutions, and individuals manage their finances. They perform various tasks, including evaluating investments, recommending financial plans, and making business decisions. This course on Stock Valuation with Dividend Discount Model can help build a foundation for this role by providing a solid understanding of how to value stocks and make sound investment decisions.
Investment Banker
Investment Bankers help companies raise capital and provide advice on mergers and acquisitions. They may also help clients evaluate investments and make financial decisions. This course on Stock Valuation with Dividend Discount Model can be particularly helpful for those interested in investment banking, as it provides a deep dive into how to value stocks and identify undervalued opportunities.
Chief Financial Officer
Chief Financial Officers (CFOs) are responsible for managing the financial operations of companies. They oversee budgeting, financial planning, and capital allocation. This course on Stock Valuation with Dividend Discount Model can be useful for CFOs, as it provides a deep understanding of how to value stocks and make sound financial decisions.
Portfolio Manager
Portfolio Managers oversee the investment portfolios of individuals and institutions, making decisions about how to allocate assets to maximize returns. This course on Stock Valuation with Dividend Discount Model can be useful for aspiring Portfolio Managers as it helps develop the skills needed to evaluate stocks and make sound investment decisions.
Security Analyst
Security Analysts research and analyze stocks and other securities, providing recommendations to investors on whether to buy, sell, or hold. This course on Stock Valuation with Dividend Discount Model can be a valuable resource for Security Analysts, as it provides the knowledge and skills needed to analyze stocks and make informed recommendations.
Investment Manager
Investment Managers oversee the investment portfolios of individuals and institutions, making decisions about how to allocate assets and maximize returns. This course on Stock Valuation with Dividend Discount Model can be useful for Investment Managers, as it helps develop the skills needed to evaluate stocks and make sound investment decisions.
Hedge Fund Manager
Hedge Fund Managers oversee hedge funds, which are investment funds that invest in a wide range of assets. They make decisions about how to allocate assets and manage risk. This course on Stock Valuation with Dividend Discount Model can be useful for Hedge Fund Managers, as it provides the skills needed to evaluate stocks and make sound investment decisions.
Private Equity Investor
Private Equity Investors invest in private companies, often with the goal of helping them grow and increase their value. They evaluate investment opportunities and provide funding to companies with high growth potential. This course on Stock Valuation with Dividend Discount Model can be useful for Private Equity Investors, as it provides the knowledge and skills needed to analyze stocks and make sound investment decisions.
Venture Capitalist
Venture Capitalists invest in start-up companies and early-stage businesses. They evaluate investment opportunities and provide funding to companies with high growth potential. This course on Stock Valuation with Dividend Discount Model can be useful for Venture Capitalists, as it provides the knowledge and skills needed to analyze stocks and make sound investment decisions.
Financial Advisor
Financial Advisors provide financial advice to individuals and families, helping them manage their finances and achieve their financial goals. This course on Stock Valuation with Dividend Discount Model can be useful for Financial Advisors, as it provides the knowledge and skills needed to evaluate stocks and make sound investment recommendations.
Budget Analyst
Budget Analysts analyze and develop budgets for organizations. They help organizations track their spending and ensure that they are using their resources efficiently. This course on Stock Valuation with Dividend Discount Model may be useful for Budget Analysts, as it provides a deep understanding of how to value stocks and make sound financial decisions.
Auditor
Auditors examine and evaluate the financial records of companies. They ensure that financial statements are accurate and that companies are complying with accounting regulations. This course on Stock Valuation with Dividend Discount Model may be useful for Auditors, as it provides a deep understanding of how to value stocks and make sound financial decisions.
Financial Planner
Financial Planners help individuals and families plan for their financial future. They develop financial plans and provide advice on investments, retirement planning, and estate planning. This course on Stock Valuation with Dividend Discount Model may be useful for Financial Planners, as it provides a deep understanding of how to value stocks and make sound financial decisions.
Controller
Controllers are responsible for managing the accounting and financial reporting of companies. They oversee the preparation of financial statements and ensure compliance with accounting regulations. This course on Stock Valuation with Dividend Discount Model may be useful for Controllers, as it provides a deep understanding of how to value stocks and make sound financial decisions.

Reading list

We've selected eight books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Stock Valuation with Dividend Discount Model.
Covers the fundamental concepts of equity valuation, including the Dividend Discount Model (DDM). It provides a practical approach to company appraisal and is written in a clear and concise manner.
Provides a comprehensive overview of valuation techniques, including the DDM. It widely used textbook in academic institutions and by industry professionals.
This classic book provides a timeless perspective on investing and valuation. It emphasizes the importance of understanding the underlying value of a company before investing.
This influential book provides a comprehensive framework for security analysis, including the DDM. It is considered a foundational text for many investors and analysts.
This concise book provides a simplified overview of valuation concepts and methods, including the DDM. It is written in a clear and engaging style, making it accessible to a wider audience.
This advanced textbook provides a rigorous treatment of corporate finance theories and practices, including valuation methods such as the DDM. It is written for students with a strong foundation in finance.
This classic textbook provides a comprehensive overview of investment analysis and portfolio management, including the DDM. It is widely used in academic institutions and by industry professionals.
This advanced textbook provides a rigorous treatment of security analysis and portfolio management, including valuation models such as the DDM. It is written for students with a strong foundation in finance.

Share

Help others find this course page by sharing it with your friends and followers:
Our mission

OpenCourser helps millions of learners each year. People visit us to learn workspace skills, ace their exams, and nurture their curiosity.

Our extensive catalog contains over 50,000 courses and twice as many books. Browse by search, by topic, or even by career interests. We'll match you to the right resources quickly.

Find this site helpful? Tell a friend about us.

Affiliate disclosure

We're supported by our community of learners. When you purchase or subscribe to courses and programs or purchase books, we may earn a commission from our partners.

Your purchases help us maintain our catalog and keep our servers humming without ads.

Thank you for supporting OpenCourser.

© 2016 - 2024 OpenCourser