I really can't figure this out. I'm trying to learn the basics of how to do a DDM. M&I says to calculate your TV based on P/E and EPS in the final year and then discount that. But it's so vague. How would you be using P/E and EPS to calculate your terminal value? I mean, what do you do with them?
| +178 | Americas M&A League Table Q2 Updated | 73 | 6h |
| +132 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 25 | 2d |
| +107 | Restructuring: Anti-climactic Experience | 26 | 5h |
| +74 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 12 | 1d |
| +69 | IB Net Worth / Savings Check | 28 | 7h |
| +51 | Boutique firm wants access to my LinkedIn? | 41 | 22h |
| +39 | Investment Banking is Hard | 17 | 17h |
| +29 | PWP vs BofA | 23 | 3m |
| +23 | Who pays the highest right now? | 14 | 4m |
| +21 | Excel macros for QOL formatting | 0 | 6d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
What? If you have Price/Earning and Earnings then you can multiply them....and voila.....you have Price!
But how is that helping you find your terminal dividend value? Because price and dividends are different
Dolorem hic et quos voluptas et est. Est occaecati provident explicabo repudiandae quia iste ipsam. Autem enim sapiente maiores et. Dolor in aliquam dolores sit.
Quis veritatis et possimus quaerat et aliquid illo. Quo harum officiis iure dolore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...