4 Must-Know Valuation Methods for Dividend Stocks | Coca-Cola Example!
Valuing a dividend stock can seem overwhelming, but in this video, I break down 4 powerful valuation methods you can use to determine if a stock is a good buy. Using Coca-Cola (KO) as a real-world example, we’ll calculate its fair value step-by-step. Whether you're a beginner or an experienced investor, these methods are practical and easy to apply.
1️⃣ Dividend Discount Model (DDM): Why future dividends matter most.
2️⃣ Discounted Cash Flow (DCF): Estimating a stock’s current value using future earnings.
3️⃣ Dividend Yield Theory: How dividend yields guide price expectations.
4️⃣ P/E Mean Reversion: Why quality companies revert to their historical P/E ratios.
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