Finance
Dividend Discount Model Calculator
Value a stock from next year's dividend, required return, and growth (Gordon model).
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This free Dividend Discount Model Calculator covers Value a stock from next year's dividend, required return, and growth (Gordon model).
The Gordon growth model prices a stock as a growing perpetuity of dividends. Related finance tools sit beside How it works, with no account required.
Using the Dividend Discount Model Calculator
Value a stock from next year's dividend, required return, and growth (Gordon model). Typical inputs are Expected dividend D₁ ($), Required return r (%) and Growth rate g (%). How it works beside the form states the identity the Dividend Discount Model Calculator applies.
FAQ
How do I use the Dividend Discount Model Calculator?
Open the Dividend Discount Model Calculator, fill Expected dividend D₁ ($), Required return r (%) and Growth rate g (%), and read the result. Divide next expected dividend by the difference between required return and growth.
What formula does the Dividend Discount Model Calculator use?
The Dividend Discount Model Calculator uses the identity in How it works. In words: Divide next expected dividend by the difference between required return and growth.
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Assumptions and limitations
Finance results are illustrative. They typically omit taxes, fees, prepayment penalties, and product rules, and they are not investment or lending advice.