Stock Valuation: S&P 500 Two-Stage Growth Dividend Discount Model Calculator
Use the S&P 500 Two-Stage Growth Dividend Discount Model Calculator to compute the intrinsic value of the S&P 500. Use the Dividend Growth Rate Calculator to get the annualized dividend growth rate.
NOTE: The Current 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 = Present value of dividends during current stage + Present value of terminal value
See DIVIDEND DISCOUNT MODELS by Aswath Damodaran for detailed computational procedures.
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