Dividend Discount Model (DDM) Excel Template

The Dividend Discount Model (DDM) Excel Template is an in-depth tool designed to help individuals evaluate the value of dividend stocks. The template integrates with Yahoo Finance for easy data input, automatically calculates the dividend growth rate, and uses the dividend discount model to estimate a stock’s intrinsic value, thereby assisting users in assessing whether a stock is over- or undervalued. Furthermore, it guides users on calculating the required return using Excel Solver. Aimed at both novice investors and seasoned professionals, this educational resource is freely downloadable, with the caveat that it does not constitute financial advice and users should seek professional financial counsel for investment decisions. The product is provided by Portfolio Constructs LLC.

Dividend Discount Model (DDM) Excel Template

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The Dividend Discount Model Excel Template is a comprehensive resource designed by Ryan O’Connell, CFA, FRM, to help investors and finance professionals determine the intrinsic value of dividend stocks. This template offers a practical application of the dividend discount model, taking users step-by-step through the process of evaluating whether a stock is overvalued or undervalued.


  1. Dividend Discount Model Formula and Calculation: Understand the essential DDM formula and example calculations to comprehend the underlying calculations.
  2. Yahoo Finance Integration: Easily download stock dividend data from Yahoo Finance to fill in the required data points for the DDM.
  3. Dividend Growth Rate Calculation: Automatically calculate the dividend growth rate based on the input data.
  4. Stock Valuation: Determine the intrinsic value of the stock using the dividend discount model.
  5. Valuation Analysis: Assess whether the stock is overvalued or undervalued based on its current market price compared to the calculated intrinsic value.
  6. Required Return Calculation: Learn how to calculate the required return using Excel Solver, an integral part of the DDM.

Whether you’re a novice investor looking to better understand dividend stock valuation or a seasoned finance professional seeking to enhance your analytical tools, the DDM Excel Template offers a powerful and efficient solution. The template is available for free download and use.

Please note, the information provided in this tool is for educational purposes only. It’s not intended as financial advice, and users should always conduct their own research and consult with a financial advisor before making investment decisions. This product is offered by Portfolio Constructs LLC.

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