In this course, the dividend discount model is a stock valuation method that uses dividends to estimate what a share is worth. The work centers on finding dividend growth rate and cost of equity, then combining them to calculate a fair share price.

You would use it when you want a structured way to value a stock based on dividends and their growth. In this course, it is applied once you have the key inputs needed to turn dividend information into a fair price estimate.

It sits between gathering dividend information and arriving at a valuation, turning core inputs into a fair share price estimate. In this course, the model links data work and calculation work into one repeatable valuation process.