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.

Use this term in a sentence

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

​ Was this Helpful? YES  NO 2 people found this helpful.

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

​ Was this Helpful? YES  NO 5 people found this helpful.

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

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
constant dollars constant maturity