John Burr Williams is an American economist, remembered today mostly for his rediscovery of the dividend discount model, which he introduced in his 1938 text 'The Theory of Investment Value'.
John Burr Williams was born on November 27, 1900, in New York City. He obtained his education from the Harvard Business School and Harvard University.
After completing his education, he started working at the Federal Reserve Board in Washington, D.C., where he began developing some of his most important theories.
His book 'The Theory of Investment Value', which was published in 1938, has had a significant influence in the field of finance and investing.
Williams was known for his ability to express complex financial concepts in simple terms.
The dividend discount model is a method used to value a company's stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value.
John Burr Williams is known for his book 'The Theory of Investment Value', where he introduced the dividend discount model. This book has had a significant influence in the field of finance and investing.
The intrinsic value of a stock is the true value of a company, based on its fundamentals and future earnings prospects. It is calculated using methods like the dividend discount model.
John Burr Williams' contribution, specifically the dividend discount model, has made a significant impact on the field of finance and investing. This model is still widely used by investors today to calculate the intrinsic value of a stock.
Other commonly used methods to value a stock include the price-to-earnings ratio, price-to-book ratio, discounted cash flow analysis, and the Gordon Growth Model.