The dividend discount model (DDM) is a method used by investors to determine the fair value of a company's stock. This model is particularly useful for investors who prioritize dividend income, offering a straightforward approach to stock valuation. … [Read more...]

The Gordon Growth Model, also known as the Gordon-Shapiro Model or the Dividend Discount Model (DDM), is a fundamental tool in the realm of long-term investment planning. Developed by Myron J. Gordon and Eli Shapiro in the early 1960s, this financial … [Read more...]

The plowback ratio, also known as the retention ratio, is an essential indicator in financial analysis. It represents the fraction of a company's net income that is not paid out as dividends, but is instead kept within the company for reinvestment … [Read more...]

The retention ratio, sometimes called a plowback ratio, stands as a critical financial metric used to assess a company's approach to distributing earnings. It quantifies the proportion of net income retained for reinvestment within the company, … [Read more...]

After a profitable financial period, management has a choice: do they reinvest all the earned net income into the business or distribute some of the earnings to shareholders? Using the money to fund future business operations signals a … [Read more...]