Gordon Growth Model Calculator
Calculate intrinsic stock value using the Gordon Growth Model (dividend discount model) for stable-growth companies.
How to Use the Gordon Growth Model Calculator
- Enter the expected next-year dividend.
- Enter your required rate of return.
- Enter the expected dividend growth rate.
- Click Calculate for intrinsic value.
Anwendungsfälle
- •Stock intrinsic valuation
- •Dividend investment analysis
- •Equity pricing model
Formel
P = D₁ / (r - g)
Häufig gestellte Fragen
When should I use the Gordon Growth Model?
Use it for mature, stable companies that pay regular dividends and have predictable growth rates.
Why must r exceed g?
If the growth rate equals or exceeds the required return, the model produces infinite or negative values, which is not meaningful.
Is this calculator free?
Yes, all calculators are completely free.