# Dividend Discount Model

*Saving & Investing — Finicade finance glossary*

A way to value a stock as the present value of all the dividends it will ever pay. Its simplest form, the Gordon growth model, assumes dividends grow at a steady rate forever.

**Also known as:** gordon growth, ddm

**Related terms:** [Equity Valuation](https://finicade.com/glossary/equity-valuation), [Present Value](https://finicade.com/glossary/present-value), [Dividend](https://finicade.com/glossary/dividend)

**Taught in:** Charter Climb — Equity Valuation

Source: https://finicade.com/glossary/dividend-discount-model