Gordon Growth Model Calculator

The Gordon Growth Model (GGM) values a stock as the present value of an infinite stream of growing dividends. It works best for mature, stable dividend payers with predictable growth. The formula is elegantly simple: Value = D1 / (r − g), where D1 is next year's dividend.

P = D₁ ÷ (r − g)

Current Annual Dividend Per Share (D₀) ($) Expected Dividend Growth Rate (g) (%) Required Rate of Return (r) (%) Current Share Price ($) — optional

D₁ (next year's dividend)

Spread (r − g)

Intrinsic Value

Sensitivity: Intrinsic Value by Growth & Required Return