Custom Search

buyupside

free stock market info

Stable Growth Dividend Discount Model Calculator

Stable Growth Dividend Discount Model Calculator

Use the Stable Growth 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 annualized dividend growth rate of a stock.
Calculator Input
Current Annual Dividend ($):
Annual Dividend Growth Rate (%):
Cost of Equity (%):
Do not enter $ or % in fields.
NOTE: Cost of Equity must be greater than the Annual Dividend Growth Rate.
Valuation Summary
Intrinsic Stock Price: $52.00

Sensitivity Analysis: Intrinsic Value across 5 Growth Rates

Showing intrinsic stock values across 5 distinct Annual Dividend Growth Rates and various Cost of Equity levels:

Cost of Equity \ Growth Rate 2.0% 3.0% 4.0% 5.0% 6.0%
7.0% $40.80 $51.50 $69.33 $105.00 $212.00
8.0% $34.00 $41.20 $52.00 $70.00 $106.00
9.0% $29.14 $34.33 $41.60 $52.50 $70.67
10.0% $25.50 $29.43 $34.67 $42.00 $53.00
11.0% $22.67 $25.75 $29.71 $35.00 $42.40
* N/A indicates invalid parameters where Cost of Equity is less than or equal to the Growth Rate. Highlighted cell represents your current input selection.

Computational Notes

The calculator, which assumes a stable dividend growth rate, uses the following formula to compute the intrinsic stock price:

Intrinsic Stock Price = Current Annual Dividend * (Annual Dividend Growth Rate / 100 + 1) / (Cost of Equity / 100 - Annual Dividend Growth Rate / 100)