how does the DDM implicitly include for goodwill?
what is DDM bro?
Dividend Discount Model bro
isn’t DDM a measurement of the fair value, which is then compared to the carrying amount (purchase price) to decide the existence of goodwill?
most companies use EBITDA or EBITDAR as a proxy for their cash flow when determining fair value, DDM is way too simplistic.
what’s EBITDAR?
earnngs before interest, tax, depreciation, amortization, and rent.
pacmandefense Wrote: ------------------------------------------------------- > how does the DDM implicitly include for goodwill? The only way this could happen is if goodwill is implicitly included in the growth factor. Since the DDM only has three inputs, one of these must be the answer.