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The Complete
Dividend Discount Model
Stock Valuation Course

Become an expert at valuing publicly traded companies with the dividend discount model (DDM) stock valuation method.

Videos
40
Duration
5h 55m
Excel Models
12
PDF Slides
79
Course Overview

About This Course

The dividend discount model (DDM) offers the most direct approach to valuing equity through expected dividend streams.

The DDM calculates a company's intrinsic value by projecting future dividend payments and converting them to present value, accounting for both growth patterns and required returns.

This comprehensive course covers every aspect of DDM analysis, from the Zero-Growth DDM and Gordon Growth Model to advanced Two-Stage DDM, H-Model, and Three-Stage DDM scenarios.

Course Creator
Bold brown letters "FJS" inside a white circle with a thin gold border.
Fajasy
Founder of StableBread

I'm Fajasy, the founder of StableBread. My background includes studying finance and a career spanning equity research, venture capital, startups, and consulting.

StableBread is a value investing site dedicated to creating helpful content on security analysis, stock valuations, and portfolio management for the average retail investor.

We've published over 300,000 words to help retail investors understand fundamental-based value investing. Notably, we're the only website that has written extensively on every stock valuation method.

Course Differentiation

Why This DDM Course?

Finance and Valuation Theory

Each lesson starts with the underlying finance and valuation theory, explaining the reasoning behind our methods and their basis in academic research, where applicable.

Locate Relevant Data

Beyond theory, we show you exactly where to find the company, financial, and economic data needed for DDM analysis—regardless of the company, industry, or location.

Real-World DDM Examples

View DDM valuations of real companies (Southern Company, Eli Lilly, Disney, and Home Depot), with every step explained. See how theory translates to practical analysis.

Student Profiles

Who Is This Course For?

Retail Investors

Perfect for the average retail investor who wants to master professional-grade DDM modeling, even without a finance background.

University Students

Bridge the gap between academic theory and actual stock valuation practice, with real-world DDM examples and models.

Finance Professionals

Whether you're in investment banking, equity research, or corporate finance, learn advanced and nuanced applications of DDM valuation.

Course Curriculum

View all of the slide topics/subtopics across the 40 videos in this course.
Preview Free Lessons
Videos
2
Duration
20m
Excel Models
None
PDF Slides
8
#1: DDM Introduction
11m 11s
DDM Premise
Time Value of Money
DDM Formula
DDM Variations
Fundamental DDM Inputs
#2: DDM Viability
9m 10s
DDM Viability
DDM Pros
DDM Cons
Videos
7
Duration
33m
Excel Models
1
PDF Slides
7
#3: Perpetual Growth Rate - Overview
3m 44s
How to Estimate Perpetual Growth Rate
Dividend-Earnings Relationship
#4: Perpetual Growth Rate - Analyst Estimates
2m 50s
M#1: Analyst Estimates
#5: Perpetual Growth Rate - Historical Growth Rates
6m 7s
M#2: Historical Growth Rates [With Excel Example]
#6: Perpetual Growth Rate - Sustainable Growth Rate
7m 30s
M#3: Sustainable Growth Rate [With Excel Example]
#7: Perpetual Growth Rate - Augmented Sustainable Growth Rate
6m 13s
M#4: Augmented Sustainable Growth Rate [With Excel Example]
#8: Perpetual Growth Rate - ROE DuPont Analysis
3m 51s
ROE DuPont Analysis [With Excel Example]
#9: Perpetual Growth Rate - Constraints on Perpetual Growth
2m 42s
Constraints on Perpetual Growth
Videos
20
Duration
3h 11m
Excel Models
6
PDF Slides
39
#10: Cost of Equity - Overview
11m 1s
Cost of Equity
Cost of Equity Explained
Security Market Line
CAPM Assumptions
#11: Risk-Free Rate - Overview
20m 21s
Risk-Free Rate
Default Risk
Risk-Free Rate Maturity
Risk-Free Rate Methods [Flowchart]
Real vs. Nominal
Real Risk-Free Rates
#12 Risk-Free Rate - Nominal Risk-Free Rates - Scenario #1: Default-Free Gov't Bond
5m 31s
Nominal Risk-Free Rates
Scenario #1: Default-Free Gov't Bond
#13: Risk-Free Rate - Nominal Risk-Free Rates - Scenario #2: Rated Risky Gov't Bond
5m 9s
Scenario #2: Rated Risky Gov't Bond
#14: Risk-Free Rate - Nominal Risk-Free Rates - Scenario #3: Unrated Risky Gov't Bond
8m 22s
Scenario #3: Unrated Risky Gov't Bond
M#1: Build-Up Method
M#2: Forward Exchange Rates
M#3: Discount Rate Conversion
#15: Risk-Free Rate - Risk-Free Rate Mistakes
2m 44s
Risk-Free Rate Mistakes
#16: Equity Risk Premium - Overview
6m 15s
Equity Risk Premium
#17: Equity Risk Premium - Historical ERP
11m 42s
Historical ERP [With Excel Example]
Arithmetic vs. Geometric
Flaws of Historical Data
#18: Equity Risk Premium - Implied ERP
23m 11s
Implied ERP
Implied ERP Steps [With Excel Example]
Implied ERP Pros & Cons
#19: Equity Risk Premium - Modified ERP - Overview
6m 28s
Modified ERP
#20: Equity Risk Premium - Modified ERP - M#1: Default Spread on Country Bond
3m 45s
M#1: Default Spread on Country Bond
#21: Equity Risk Premium - Modified ERP - M#2: Default Spread Adjusted for Equity Risk
7m 30s
M#2: Default Spread Adjusted for Equity Risk [With Excel Example]
#22: Equity Risk Premium - Modified ERP - Estimate Company Exposure to CSRP
14m 45s
Weighted Average CSRP for Multinationals
Estimate Company Exposure to CSRP [With Excel Example]
#23: Equity Risk Premium - Equity Risk Premium Mistakes
3m 26s
ERP Estimation Mistakes
#24: Beta - Overview
7m 30s
Beta
Beta Explained
Systematic vs. Unsystematic Risk
How to Interpret Beta
#25: Beta - Beta Regression
13m 51s
How to Calculate Beta Regression [With Excel Example]
How to Read Beta Regression Outputs
Beta Drifting
Flaws of Beta Regression
#26: Beta - Bottom-Up Beta
20m 16s
Determinants of Beta
Bottom-Up Beta [With Excel Example]
Why Bottom-Up Betas
#27: Modified CAPM - Overview
2m 0s
Modified CAPM Formula
#28: Modified CAPM - Size Risk Premium
9m 43s
Size Risk Premium
How to Estimate SRP
Flaws of SRP
SRP Alternatives
#29: Modified CAPM - Company-Specific Risk Premium
8m 6s
Company-Specific Risk Premium
CORP Example
Videos
2
Duration
20m
Excel Models
1
PDF Slides
5
#30: GGM - Overview
7m 32s
GGM Explained
GGM Formulas
GGM Assumptions
GGM Relevant Applications and Limitations
#31: GGM - Example
12m 3s
GGM Example Overview
GGM Example [With Excel Example]
Videos
2
Duration
15m
Excel Models
1
PDF Slides
5
#32: Margin of Safety and Determine Valuation
5m 53s
Margin of Safety
Determine Valuation
Real-World Example [With Excel Example]
#33: Sensitivity Analysis
9m 24s
Sensitivity Analysis Explained
Excel Sensitivity Tables [With Excel Example]
Interpret Sensitivity Tables
Videos
2
Duration
28m
Excel Models
1
PDF Slides
5
#34: Two-Stage DDM - Overview
11m 25s
Two-Stage DDM Explained
Two-Stage DDM Formulas
Two-Stage DDM Assumptions
Two-Stage DDM Relevant Applications and Limitations
#35: Two-Stage DDM - Example
16m 55s
Two-Stage DDM Example Overview
Two-Stage DDM Example [With Excel Example]
Videos
2
Duration
18m
Excel Models
1
PDF Slides
5
#36: H-Model - Overview
7m 47s
H-Model Explained
H-Model Formula
H-Model Assumptions
H-Model Relevant Applications and Limitations
#37: H-Model - Example
10m 15s
H-Model Example Overview
H-Model Example [With Excel Example]
Videos
2
Duration
26m
Excel Models
1
PDF Slides
5
#38: Three-Stage DDM - Overview
11m 52s
Three-Stage DDM Explained
Three-Stage DDM Formulas
Three-Stage DDM Assumptions
Three-Stage DDM Relevant Applications and Limitations
#39: Three-Stage DDM - Example
14m 41s
Three-Stage DDM Example Overview
Three-Stage DDM Example [With Excel Example]
#40: Football Field Valuation
3m 8s
Football Field Valuation [With Excel Example]

Purchase Now for Lifetime Access!

Pay for the course all at once, or in two equal payments. Get lifetime access to the course, all of the Excel spreadsheet models, and all of the PDF slides.
Full Course
$75
$100
25% OFF
5h 55m of Video Course Content
40 Videos
12 Excel Models (Downloadable)
79 PDF Slides (Downloadable)
Self-Paced Online Learning
Lifetime Support
Lifetime Access on Any Device
Unlimited Lifetime Updates
Enroll Now
Payment installments offered at checkout
Video Guidelines

HD Quality
Full HD 1080p video quality

Studio-Quality Audio
Professional sound quality

Video Chapters
Quickly navigate between different topics

Closed Captions
Human-reviewed English captions for accuracy

Searchable Captions
Find any topic within seconds

Fast Video Cuts
No filler, straight to the point

Adjustable Speed
Learn at your own pace

Conversational Style
Clear explanations with limited technical jargon

Interactive Cursor
Focus on what's important on the screen

Zoom Effects
Get a closer look when needed

Frequently Asked Questions

Have any doubts about this DDM stock valuation course?
Here are some frequently asked questions that may address them.
  • Access to internet using any internet browser. This course can be accessed on any device (desktop, laptop, tablet, or phone). 
  • Basic familiarity of financial statements (income statement, balance sheet, and cash flow statement).
  • Access to Microsoft Excel (any version). Google Sheets is not recommended.

All sales are final and we are unable to offer refunds, exchanges, or cancellations. Here's why:

  • Transparency Before Purchase: We strive to be completely transparent about our product offerings. We provide detailed descriptions, previews of course lessons, Excel models, PDF slides, and other resources to help you understand what's included in the course before you purchase.
  • Digital Delivery: Although video content access can be revoked, the Excel spreadsheet models and PDF slides are delivered electronically. This makes it impossible to retract access to these materials.

Forever. You will have lifetime access to this course and all future updates.

This is a self-paced online course.

You'll receive priority support access with your course purchase.

For any questions, feedback, or suggestions about course content, I typically respond within 24 hours.

Basic Microsoft Excel knowledge is helpful, but not required.

All templates and examples are provided, so you won't need to build models from scratch.

The course includes financial modeling, but keeps it relatively straightforward.

This course provides an in-depth and comprehensive explanation of DDM stock valuation, containing ~6 hours of video content.

However, depending on the company you're valuing and/or your familiarity with the DDM model, you can skip certain sections.

For example, if you're already familiar with the cost of equity, you can save ~3 hours.

Still have questions? Just contact me!

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