After you have determined that the business model is a good business model based on the qualitative analysis of economic moats, you have to determine the value of the Company to know if it is undervalued or overvalued at the current stock price. There are a few ways to determine value: 1. Dividend Discount Model 2. Dividend Yield 3. Discounted Cash Flow 4. Price / Earnings Ratio 5. Price / Net Asset Value or Price / Net Book Value 6. Enterprise Value / EBITDA 7. Net Cash per Share Dividend Discount Model (DDM)

Stock Value          =	Dividends Per Share
	Required Rate of Return – Dividend Growth Rate

Dividend Discount model for calculating the intrinsic value is based on the cash flows a stock would provide to the investor. DDM assumes that the company will issue dividends into perpetuity and will grow at a certain rate. DDM works by valuing ......