Gordon Growth Model Calculator

About this calculator

This calculator values a dividend-paying stock using the Gordon growth model (also called the dividend discount model): P = D₁/(r − g), where D₁ is next year's expected dividend, r is the required rate of return, and g is the dividend's expected constant growth rate.

Equity analysts and dividend investors use it to estimate a stock's intrinsic value from its dividend stream alone, most reliably for mature, stable-growth companies like utilities where dividends grow predictably. Enter the expected dividend, required return, and growth rate to get the fair value per share.