Investment Management Program

Analyst Workbook

3-Stage FCF and Dividend Discount Models

The above worksheet was assembled by Justin Garber, a member of the Fall and Spring 2007 IMP class. The concept is based on Professor Damodaran’s 3-stage Free Cash Flow stock valuation and Dividend Discount model. The Fall 2009 and Spring 2010 IMP class will be using the valuation worksheets for the intrinsic values.
*To better understand and properly utilize these models, open the refenece guides below.
- Reference guide for Free Cash Flow to Equity Model
- Reference guide for Dividend Discount Model

2-Stage Dividend Discount Model

These worksheets will be used when the prospective stock's dividends will be expected to have a high growth period and then return to a constant growth period.

Constant Growth Dividend Discount Model

These worksheets will be used when the prospective stock's dividends will be expected to grow at a constant rate.

Download the Analyst Workbook here.

This worksheet was developed by the IMP class of 2001-2002. It contains a spreadsheet called "Analyst Sheet" which has the current criteria that the IMP class uses in stock selection. Subsequent pages include a Discounted Earnings Model, Price Valuation Models, and Return on Capital Model. Although this worksheet may not be used currently by the current IMP class, future classes will be able to expand upon and use the sheets for stock analysis.

(If this sheet only opens in a new window you can hold shift down and click on the link to download it.)