DDM Calculator
Our free DDM Calculator (Dividend Discount Model Calculator) helps you determine the intrinsic value of dividend-paying stocks. This powerful tool is essential for dividend investors looking to make informed investment decisions. Save and manage multiple DDM calculations for different stocks, with automatic saving and easy switching between calculations.
Dividend Discount Model Calculator
Understanding DDM Analysis
The Dividend Discount Model (DDM) is a fundamental valuation method used by investors to determine the intrinsic value of dividend-paying stocks. It works by:
- Using the current dividend payment
- Projecting future dividend growth
- Discounting future dividends to present value
Alternate Valuation Methods
While DDM analysis is excellent for dividend-paying stocks, other valuation methods may be more appropriate depending on your analysis goals:
Traditional DCF Analysis
For forward-looking valuation based on cash flows rather than dividends, traditional DCF analysis may be more suitable. It helps you determine what you think a company is worth based on your projections.
Try our DCF CalculatorReverse DCF Analysis
For understanding market expectations and implied growth rates, reverse DCF analysis may be more suitable. It helps you determine what growth rate would be needed to justify a stock's current price.
Try our Reverse DCF CalculatorFrequently Asked Questions
What is a DDM Calculator?
A DDM (Dividend Discount Model) Calculator estimates the intrinsic value of dividend-paying stocks based on their current dividend payments and expected growth. It helps investors make informed decisions by valuing companies using the dividend discount method.
How accurate is this dividend discount model calculator?
Our calculator uses industry-standard formulas and lets you customize key assumptions for more accurate results. The accuracy depends on the quality of your inputs and realistic growth and discount rate assumptions.
Who should use a DDM calculator?
Dividend investors, income-focused investors, and anyone interested in estimating the fair value of dividend-paying stocks can benefit from using a DDM calculator.
What inputs do I need for a dividend discount model calculator?
You need the current annual dividend per share, expected dividend growth rate, and discount rate. Our calculator makes it easy to enter these values and get instant results.
How do I manage multiple DDM calculations?
Our calculator automatically saves your DDM calculations in your browser's local storage. You can create multiple calculations by clicking the "+" button, switch between them by clicking on their cards, and delete them using the "x" button in the top right corner of each card. Each calculation is saved with its stock name, inputs, and results, making it easy to compare different valuations.
How does the auto-save feature work?
The calculator automatically saves your changes after 1 second of inactivity. When you enter a stock name or update any input field, the changes are saved locally in your browser. This ensures you never lose your work, even if you accidentally close the browser or navigate away from the page. Your saved calculations will be available when you return to the calculator.
What happens to my saved calculations if I clear my browser data?
Since the calculations are stored in your browser's local storage, clearing your browser data will remove all saved DDM calculations. We recommend exporting important calculations or taking screenshots if you plan to clear your browser data.
Ready to Test Your Portfolio Strategy?
Create your first backtest in seconds. No coding or complex formulas required.
Start Your Backtest