Discover how the Multistage Dividend Discount Model uses varying growth rates to value stocks, including blue-chip companies, throughout different business cycles.

Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

Generally speaking, the stock market is driven by supply and demand, much like any market. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is ...