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.

S&P 500 Two-Stage Growth Dividend Discount Model Calculator
Current Value:
Current Dividend Yield (Include stock buybacks) (%):
Current Stage Annual Dividend Growth Rate (%):
Currrent Stage Duration (Years):
Current Stage and Stable Stage Cost of Equity (%):
Stable Stage Annual Dividend Growth Rate (%):
Do not enter $ or % in fields.

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.

Related Calculators

Capital Asset Pricing Model (CAPM) Calculator

Stock Valuation: H-Model Dividend Discount Model Calculator

Stock Valuation: Stable Growth Dividend Discount Model Calculator

Stock Valuation: Two-Stage Growth Dividend Discount Model Calculator