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Finance
Gordon Growth Model
Stock valuation using dividend discount model
Runs locally in your browser
Parameters
Results
- Fair value
- $35.71
- Dividend yield
- 7%
P = D₁ / (k − g). Assumes constant perpetual dividend growth.
How it works
Estimate intrinsic stock value using the Gordon dividend growth model.
Who it's for: Equity analysts valuing dividend-paying stocks with stable growth.
Formula: P = D₁ / (k − g) where k > g.
D₁ is the expected next dividend; g is perpetual growth rate; k is required return.
Also shows implied dividend yield at fair value.
How to use
- Enter D₁ (next dividend), Growth rate g (%), and Required return k (%).
- Read Fair value and Dividend yield.
Good to know
- Requires k > g; the model assumes constant perpetual dividend growth.