Stock Valuation: H-Model Dividend Discount Model Calculator

Use the H-Model Dividend Discount Model Calculator to compute the intrinsic value of a stock.

Look up a stock's current annual dividend and historical dividends at Yahoo! Finance or another stock site. Use the Dividend Growth Rate Calculator to get a stocks's annualized dividend growth rate.

H-Model Dividend Discount Model Calculator
Current Annual Dividend ($):
High Growth Stage Annual Dividend Growth Rate (%):
High Growth Stage Duration (2H Years):
High Growth Stage and Stable Stage Cost of Equity (%):
Stable Stage Annual Dividend Growth Rate (%):
Do not enter $ or % in fields.

NOTE: The High Growth Stage and Stable Stage Cost of Equity must be greater than the Stable Stage Annual Dividend Growth Rate.

Computational Notes

The calculator, which assumes two stages of dividend growth, uses the following formula to compute the intrinsic stock value:

Intrinsic Stock Value = Value of high growth + Value of stable growth

See DIVIDEND DISCOUNT MODELS by Aswath Damodaran for detailed computational procedures.

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