Two-Stage Growth Dividend Discount Model Calculator

Compute the intrinsic value of a stock.

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

NOTE: Stable Stage Cost of Equity must be greater than 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 high growth stage dividends + Present value of terminal price

See Aswath Damodaran for detailed computational procedures.