Gordon Growth Model Calculator
Estimates the intrinsic value of a stock based on future dividend payments
?Most recent annual dividend payment per share
?Expected annual dividend growth rate (long-term)
?Your minimum acceptable return (discount rate)
Valuation Results
Intrinsic Value Per Share:
$0.00
Sensitivity Analysis:
| Growth Rate | Value @ 7% Return | Value @ 8% Return | Value @ 9% Return |
|---|---|---|---|
| -1% | $0.00 | $0.00 | $0.00 |
| 3% | $0.00 | $0.00 | $0.00 |
| 5% | $0.00 | $0.00 | $0.00 |
| 7% | $0.00 | $0.00 | $0.00 |
Interpretation:
The Gordon Growth Model values a stock based on its future dividend stream.
Formula:
Value = D0 × (1 + g) / (r – g)
Where:
D0 = Current dividend
g = Dividend growth rate
r = Required rate of return
Key Assumptions:
- Dividends grow at a constant rate forever
- Growth rate is less than the discount rate
- Company pays stable, predictable dividends