[jnwatson]

Among the oldest value models, the Dividend Discount Model, says that the value of a company's stock is based on the present value of its future dividend payments.

Even if a company doesn't currently pay dividends, it will eventually do so or be purchased by a company that does. That's the theory at least.

[throwaway2037]

As someone who has been looking at equity "value models" for more than 15 years, I can confidently say it is all bullshit. None of them can explain ("predict") price to earnings ratio or price to book value ratio. Sentiment matters much more in equities than any analyst will admit.