Talk:Dividend Discount Model: Difference between revisions
imported>Anh Nguyen No edit summary |
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[[User:Anh Nguyen|Anh Nguyen]] | [[User:Anh Nguyen|Anh Nguyen]] | ||
== Proposal to delete == | |||
This model is tautological. It says no more than that the value of a share in a company is determined by its future dividend payments. Since dividends are the only benefit that a company pays to a shareholder, that is a circular statement. The fact that future payments have to be discounted in order to arrive at their present value is also a tautology, reflecting nothing beyond the definition of the concept of discounting. I suggest that CZ should avoid taking up readers' time with such trivialities and that the model deserves no more than a dismissive mention in a more general article. [[User:Nick Gardner|Nick Gardner]] 16:12, 27 February 2008 (CST) | |||
Revision as of 17:12, 27 February 2008
Discussion invited!
I'm not sure whether much more could be said on this subject. The formulas are, afaik, correct. The assumptions are enumerated, and the practical limitatiations arising from those assumptions are described.
In my experience (but I'm into bonds and macro economics, and try to stay away from equities as far as possible) the DDM is not used much in day-to-day equities portfolio management. Theoretically, it is no doubt quite sound, but reality as often as not refuses to behave according to the textbooks.;)
I think this article could be listed as "fit for pulication", in the sense that it is, in its present form, correct as to facts and sufficiently complete.
Best regards, Martin van Dalen 13:38, 20 November 2006 (CST)
DDM
Hi all,
I thinks that this article is the example of an "almost-finished article". Everyone interested in that matter should take a look at it. Annote it, modify,.. etc.. and then, in some times (one week..?), it should be removed from the workgroup.
As soon as it someone found that an article is "almost-finished", we should notice it in the Talk page.
Anh Nguyen 01:36, 21 November 2006 (CST)
- Glad to read you agree with me. BTW, does anybody know what the formal procedure is for approval? Martin van Dalen 13:33, 23 November 2006 (CST)
Hi,
I think that we should move this article in the for approval section
Proposal to delete
This model is tautological. It says no more than that the value of a share in a company is determined by its future dividend payments. Since dividends are the only benefit that a company pays to a shareholder, that is a circular statement. The fact that future payments have to be discounted in order to arrive at their present value is also a tautology, reflecting nothing beyond the definition of the concept of discounting. I suggest that CZ should avoid taking up readers' time with such trivialities and that the model deserves no more than a dismissive mention in a more general article. Nick Gardner 16:12, 27 February 2008 (CST)