dividend discount model

Investment Banking Slide Examples of Dividend Discount Model

Tl;dr: Part of a collection of real examples of M&A investment banking slides. This blog covers Dividend Discount Model. See the PowerPoint presentations investment bankers are paid millions for. No matter your job, or your aspirations, you can learn from these slides.

This is part of a collection of 67 free M&A presentations from the top 20 banks (based on ranking, and also the quality of presentation for you to learn from).

Collection of M&A slide examples

The main page for all the M&A resources is here.

I have broken out 827 examples of slides across 32 sections. You can click through to the section you want to learn about next here:

Company Overview
Corporate Structure
Management Projections
Research Analyst
Comparison Financial Projections
Analysis At Various Prices
Share Price Analysis
Volume Weighted Average Price
Regression Analysis
Discounted Cash Flow
Weighted Average Cost Of Capital
Comparable Companies
Comparable Transactions
Dividend Discount Model
Leveraged Buy Out
Premiums Paid
Sum Of The Parts
Football Field
Executive Summary
Offer Summary
Offer Comparison
Accretion DilutionĀ 
Exchange Ratio And Contribution Analysis
Shareholder Analysis
Ability To Pay
Strategic Options
Transaction Case Study
Next Steps
Full valuation
Sales Pitches

Is this blog for you?

Why the heck should you care? Investment banks (historically) attracted the best and the brightest.

  • Slide structure/design: Learn how complicated concepts are structured and designed in PowerPoint
  • Analysis approach: See exactly how complex financial methods are presented
  • Strategy and communication: M&A deals are not (normally, other than many Duff and Phelps decks) cookie cutter. There’s a host of topics that need to be dealt with
  • Morbid interest: I used to do this for a living, but it’s still interesting to see how PPT are made… but then maybe it’s just me and so FML šŸ˜‰

Who this will help:

  • You want to work in banking: There’s a lot of applicants. Knowing the job helps you answer questions
  • You work in banking: Even if you’re an MD, you need to know how the best are structuring their thoughts/analysis
  • You write presentations: You can’t buy learnings like this. You can learn from the slides
  • You have a curious mind: Good for you

About Dividend Discount Model

A Dividend Discount Model is very similar to the Discounted Cash Flow analysis, though a DDM is far less common than a DCF. I don’t actually think I ever even did a DDM to be honest. As DCF looks at the cash flow that comes out of a company (the free bit means after the running costs are removed) and the DDM looks at dividends that are paid.

There are two reasons that a DDM is used less frequently

  • Not all companies pay dividends! Uh, cough, Amazon!
  • High growth companies are focused on growing

So all that happens in this analysis is you project the dividends that are paid, you calculate the discount rate, and voila you have a valuation.

I would focus on learning about a DCF.

Why these slides are made

Bankers do financial analysis, valuations are literally your job. DDMs are not super common though. DCF is like water to you.

Comments on making these slides

If you can do a DCF you can do a DDM. There’s a few tweaks, but same same but different.

Examples of Dividend Discount Model

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