In contrast to the FCFE approach, the dividend discount model (DDM) approach values:

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The dividend discount model (DDM) approach values the stream of cash flows that stockholders expect to receive through dividend payments. It calculates a stock's intrinsic value by projecting future dividend payments and discounting them back to their present value. The FCFE approach, on the other hand, values the cash flows that are available for distribution to stockholders, including both dividends and share buybacks.

In Contrast to the FCFE Approach, the Dividend Discount Model