Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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Using the Dividend Discount Model to calculate the stock price in the American stock market

Authors
Qianyu Han1, *
1High School Attached to Northeast Normal University, Changchun, China
*Corresponding author. Email: hanqianyu@ldy.edu.rs
Corresponding Author
Qianyu Han
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_43How to use a DOI?
Keywords
Business investment; Stock price; Dividend Discount Model; American stock market
Abstract

Nowadays, more investors are trying to invest in different companies or projects to generate more profit. Thus, a method to evaluate stocks becomes necessary for investors. A method has been created to help investors always successfully invest by predicting the stock price by paying each company’s dividend, a calculating model called the Dividend Discount Model. This research mainly investigates whether the Dividend Discount Model is suitable for use in the American stock market. This paper uses two American companies as examples to analyse. The researcher is asked to identify the influencing factors, such as dividends, growth, and discounts. The calculated stock value is compared with the real stock value to determine the accuracy of this model. After the experiment, the researcher found out that the dividends of each company stay in an increasing trend, so the Dividend Discount Model can assume the stock price correctly, which helps people to finish more successful investments.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_43How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qianyu Han
PY  - 2025
DA  - 2025/02/24
TI  - Using the Dividend Discount Model to calculate the stock price in the American stock market
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 412
EP  - 417
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_43
DO  - 10.2991/978-94-6463-652-9_43
ID  - Han2025
ER  -