Well, I said it once and I'll say it again, you are really good at explaining these formulas using real examples. Funny how you are the only guy on youtube that goes straight to the point in a simple and understandable way.

What does it mean when the result of difference is negative nmbr ?

What you did was so valuable.. Thanks Bro. I am subscribing

Man, sharing your knowledge feels like receiving dividends to my financial brain investment! hahaha. You make seemingly complicated stuffs so simple. You're an awesome teacher☺. I wish you can add some takeaways every end of your videos for scenarios where the method might not apply (such as if a negative output for this one). Also, if you can make for ETF valuation, but i think its always close to NAV? sorry, dummy brain here😅 Nevertheless, your tutorials are so helpful. Thank you so much. Keep making more (sounds demanding)hehehe.

I watched this during my work break! This was amazing! Definitely hitting the sub button! Thanks for break in down the dividend discount model 💯

What if WACC minus Average dividend growth is negative? Will the formula still work or does it need an adjustment?

Hi, for the dividend discount model, aren't we supposed to use the cost of equity insted of the WACC to find the intrinsic value?

What formula should I use when the average Growth Rate is higher than WACC? idk what to do

You should not use the WACC to discount the dividends of a company, you should use the Cost of Equity! Great video btw :)

Thank you so much! you solved the problem I have been stucked for a long time

Can you possibly do a video covering how to calculate WACC? Using both the market value of equity and market value of debt?

I'm getting an intrinsic value that's like a giant negative number. I'm working on AVGO.

Thank to explain in easy way

And what happens if the wacc is lower that the Average Growth rate?

Hi, can't we just use the CAPM instead of the WACC to calculate the yield expected by the market ?

What do you do If the Average Growth Rate is bigger than WACC?

Good video dude important stuff!

Simply the Best!!

What should I do if the average growth rate is higher than the WACC?

If the Dividend Growth is higher than the WACC i get a negative figure

Hi, I want to know why use WACC but not cost of equity in this video?

Great tutorial, thank you sir

its only working if average growth rate =< WACC, otherwise you get a negative value...

Thanks!

Why would you use WACC in dividend discount model, why not cost of equity?

Is it valid to use WACC as WACC used both cost of equity and debt?

Im confused by the formula to get intrinsic value. The calculation you are using with those exact number is not coming out for me to what you are getting.

Can you explain how can the Div. discount model reliably tell us the intrinsic value of a stock? If a company doesn't pay dividends, than according to this formula the stock will have no value???? we are not counting in anything else of the company's earnings.

It didn't work for me. I did it for SCHD and came up with a 2022 dividend total of 2.56 with an average growth rate of 15.53 and 6 for the WACC/Discount Rate gives me a negative intrinsic rate of -31.07. I'm sure that is happening because the average growth rate is less than greater than the discount rate. Does this not work on ETF"s?

I really like your channel and cannot wait seeing new guides, but Is there a way automate it when changing the ticker?

Is it possible a negative number?

Love it!

What do you do if the dividend payout is different at different points in the year

Where do I find WACC with out having to do the math?

Cool stuff man. Do you recommend any books to dive deeper into this topic?

“For beginners: If the ticker symbol isn’t “O” don’t invest” -Some other guy

The working is not complete , where is the forecasting of the dividends and then discounting them to find the PV

¿what happend if in 2020 and 2021 the company didnt pay dividends because the had loses?

Hi! can i still use DDM even if the growth rate is sometimes negative?

what does it mean when the result of intrinsic value is negative number?

Do you need a safety margin for this model? I noticed that you did not use one.

Love your videos BTW! A comment/request and a question. When using DD Model do you or should you include a safety margin (say a 15 to 30%) reduction of calculated intrinsic value price? Most models include this but I've never seen this valuation model before so not sure what the norm is here. Next, I've seen your work and you are so capable of building a dynamic model that imports all the data via web scraping. To have a feature like this incorporated into a watch list where we see updated 'fair value" compared to current market price would be HUGE. That is a model I would pay for verses plugging away at Google Sheets and cussing like a sailor when I screw up the formula data. Great job. Subscribed and Liked!

Too good.

what does it mean the 10% difference? How can you know if a stock is over or undervalued, once you know the % difference. is 10% allot or is it little, thus this stock is not overvalued?

Thanks bud! Would it be possible if the average growth rate is actually higher than WACC? If that's the case what do we have to do?

Hi! May I know if this is a zero growth DDM?

can i do 10 years worth of dividend data?

Stop tutoring excel functionality in the midst of an all important topic on Dividend Discunt Model

I couldn't believe how you just glossed over the WACC and how to obtain those numbers. Makes the rest of the content unusable.

What if Average Growth Rate is higher than WACC?? Other people are also asking this question, but there hasn't been no answer