share valuation- constant growth model

[Sherwoodlond]

Can anyone give me some help/advice on share valuation - the constant growth model?
Or direct me to a website that has spome information on thi,s please?

[ewand]

what is it that you want to know?

[Sherwoodlond]

How valid and how useful is this model for valuing shares for a company finance manager and for a private investor?

Can you give me an idea of the use of this valuation model, please?

or direct me to a website?

[ewand]

The model can be useful under certain circumstances for the valuation of stock of certain types. However it is usually used as a tool involved in more comprehensive valuation, not alone, therefore across multiple industries and businesses with varying dividend returns it is unlikely to be too helpful when used alone. I would recommend getting hold of a good corporate finance textbook like "Principles of Corporate Finance" by Brearley and Myers to give you more of a background on valuation.

If you want quick info on share futures, have a think about multiples.....

[Sherwoodlond]

Thanks.

I am an accountancy student and am researching for an essay on this model. I need some direction about it.

Thanks for your help.

Any more help would be appreciated.

[ewand]

Look into textbooks that include changes post-IFRS........also, for more broad overviews into stocks and shares, look towards some portfolion theory and management texts, or books focussed on investments.....they should all help you out, infact contain more info than you'd need