Discount model part 3: Dividends
In this part of the article series about the discount model, I will discuss the dividends discount model (or DDM). In previous articles in this series, the basis and calculation of the discount model and the cash flow discount model are described.
In this article, I write about the pros and cons of the use of the dividends when calculating the discount of shares of a company. Besides that, I also explain the specific principles and attention points for the dividends discount model. I will also discuss the origin of the discount models (not specific the dividends discount model) and the investors that use the discount model.
Discount model part 2: Cash flow
In part one of the discount model series, the different discount model types and the calculation of the discount model are discussed. Part two of the discount model article series is aimed at the cash flow discount model (or discounted cash flow model). In this article the reason why the cash flow is used in the discount model, what the different types of cash flows are and the shortcomings of the discounted cash flow models.
Why nature and the economy are similar
The economy and biology are strangely connected. In both the economy and biology similar events occur that have similar causes. In this article, I will name some causes and effects. Within the plant- and animal life, there are periods of growth and decline, just as in the economy. But that is just a comparison on a very high level. What can we learn from the science of biology?
Buy, sell or hold
Investment analysts always love to give an advice about shares. Most of the time they use the words buy, sell or hold to give a short statement about their advice. These opinions are easy to understand and can be counted to get an overall advice (and to determine the buy-to-sell advice ratio).
Calculation tools
For this website, calculation tools are developed which should make investment decisions. One example of such a calculation tool is the calculation of the theoretical value of a stock. The calculations are mostly based on extrapolations of historical data.
The discount model is the first calculation module which is available. This model is used by successful investors like Warren Buffett to calculate the price of a stock. Because different investors have different perceptions about the calculation of a stock price, this tool has been developed as flexible as possible.
Company information
To select the right share, it is important to have information about the companies you want to invest in. Besides standard company information, the financial data needs to be clear. This information about individual companies can be found in the company menu, but it is also possible to make a comparison between different companies. This makes it possible to compare financial data of multiple companies in the same industry, for example.
Investment tools
For an investor, several tools are available to make investment decisions easier. Many of these investment tools are very expensive, but there are also free tools available. The functions of these tools differ from collecting and storing daily stock quotes to making technical analysis. On this website various investment tools and their functionalities are discussed in articles.
The first tools which are discussed, are Stockbrowser and Stockvisor.
Download
In the download section of this website, historical share prices can be downloaded. Also some supporting files of the discussed investment tools are available.
Select your language.
