choose investing logo

Gordon Growth Model Calculator


Estimate stock value using dividends with our Gordon Growth Model Calculator. Make informed investment decisions easily.









Result Stock Value $0
More Calculators: Compounding Interest, S&P 500 Time Machine, FIRE, Net Worth, Debt Repayment, Investment Fee, Savings

Gordon Growth Model Formula

The Gordon Growth Model calculates the intrinsic value of a stock based on its future dividends

Stock Value = Dividend Per Share / (Discount Rate - Annnual Dividend Growth Rate)

Where:

  • Dividend Per Share: Expected dividend per share in the next period.
  • Discount Rate: Required rate of return (or cost of equity).
  • Annnual Dividend Growth Rate Expected growth rate of dividends.

This model is used for dividend-paying stocks with stable growth rates.

More Articles