Gordon Growth Model Calculator

Calculate the fair value of a dividend stock using the dividend discount model.

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GGM Stock Valuation

Enter the dividend, growth rate, and required return to find fair value.

Fair value per share
$0
Margin of safety: 0%
Intrinsic value
$0
Current price
$0
Margin of safety
0%
P/E implied
0
Dividend yield
0%
Status
—

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Annual dividend per share ($)$4
Dividend growth rate (%)5%
Required rate of return (%)10%
Current stock price ($)$80
ResultValue
Fair value per share$84.00
Intrinsic value$84.00
Current price$80.00
Margin of safety+5.0%
P/E implied21.0x
Dividend yield5.00%

Values shown are produced by this page in your browser; change any input to update them.

How to use the GGM Stock Valuation

  1. Annual dividend per share ($) — default $4
  2. Dividend growth rate (%) — default 5%
  3. Required rate of return (%) — default 10%
  4. Current stock price ($) — default $80
  5. Press Calculate to update the results instantly.

Frequently asked questions

Sources & references