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.

Stable Growth Dividend Discount Model Calculator
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.

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)

See Aswath Damodaran for detailed computational procedures.

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