Thursday 3 July 2014

Dividend Discount Model (DDM) on Financial Statement Analysis Template (v1.40)


Today, I have created a new worksheet to perform earnings based valuation based on Dividend Discount Model (DDM).  You can click here to access the said template on the One Drive

The "V-DDM" worksheet is a new valuation worksheet that I created based on the existing Financial Statement Analysis Template and all the required data will be auto picked by the V-DDM worksheet after you filled in the purple colour input worksheet as per specified in Financial Statement Analysis Template. 

This worksheet will calculate the DDM's intrinsic value of the stock price based on 6 different scenarios.
  1. No Growth
  2. Constant Growth Dividend
  3. Growth on Y1-Y5 and then Constant Growth Dividend
  4. Growth on Y1-Y5, Y-6-Y10 and then Constant Growth Dividend
  5. Growth on Y1-Y5 and then Sell the Shares
  6. Growth on Y1-Y5, Y6-Y10 and then Sell the Shares

 
You can review the data setup sections in order to confirm all of the inputs. Please refer to Dividend Discount Model (DDM) writeup if you not sure about the data setup. The input data can be override on the grey color cell. (It is similar to Financial Statement Analysis Template.) 

 


The data setup will picked value from supporting data sections to serve as default value. You can
review the key financial data and override the default value on grey color cell.

 

And, last but not least you can alway review to the Calculation Detail section in order to check out the how the excel calculate the intrinsic value.

You may interest to view the previous release on the template:-

References:-
 

2 comments:

  1. Thanks For Sharing. Especia Associates provides SEBI Valuation Consultants. Our SEBI valuation process is conducted by a team of professionals with years of experience in valuation. Our team of BSE/NSE impaneled analysts, chartered accountants, and SEBI registered merchant bankers are well acquainted with the regulations and requirements of the stock exchange. We have prepared hundreds of valuation reports and have assisted in determining the value of the company’s stock along with valuations of similar companies. if you need SEBI Valuation Consultant call at 9310165114 or visit us SEBI Valuation Consultants

    ReplyDelete
  2. Nice blog, When you choose the best accounting solution in Surat, you're choosing a partner dedicated to your financial success. Our commitment to excellence, expertise, and personalized service sets us apart, making us the ideal choice for businesses seeking a trusted financial partner in Surat. Join us and experience a transformative approach to accounting that will help your business thrive.

    ReplyDelete