constant growth model

Definition

Variation of the dividend discount model that is used as a method of valuing a company or stocks. This variation assumes two things; a fixed growth rate and a single discount rate.

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The constant growth model was a really good model in my eyes and I used it in my everyday practice.

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You should always be looking to find a new constant growth model that will keep you on the right path.

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The constant growth model was used to ascertain the value of the portfolio that included the long position in the company.

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