Analysis of the Differences between DDM and DCF Models in Enterprise Valuation: A Case Study of Apple Inc
DOI:
https://doi.org/10.54097/69ee9v37Keywords:
Enterprise valuation, DDM model, DCF model, Apple Inc.Abstract
In today's complex and changeable financial market, it is very important for investors, managers and other stakeholders to accurately evaluate the value of enterprises. This paper takes the discounted dividend model (DDM) and discounted cash flow model (DCF) as the research object, and takes the world-famous Apple Company as the research object, and deeply analyzes the differences between the two in the application of enterprise valuation. By elaborating in detail on the basic ideas, development history and application scenarios of the two models, the relevant financial data of Apple Inc. are collected and processed, and the DDM and DCF models are respectively used to value it. The research results show that due to differences in model assumptions, cash flow selection and other aspects, there are significant differences between the two in the valuation results of Apple Inc. This research helps investors and business managers to have a clearer understanding of the characteristics of these two models, thereby enabling them to make more reasonable choices of valuation models in actual decision-making and enhancing the scientific and accuracy of decision-making.
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