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Why is it inappropriate to use the standard dividend discount model (DDM) to value a true...

Why is it inappropriate to use the standard dividend discount model (DDM) to value a true growth company?

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One of the main reasons as to why Dividend Discount Model is not appropriate to value a true growth company is that the model assumes dividend is the only source of income. Factors such as buyback are completely ignored by the model which is not realistic. And if a company does not pay dividends but believes in ploughing back its earnings for further growth this model cannot be used,Inspite of the fact that returns can also be generated from capital appreciation and not just divdends, the model ignores the same.

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