Two-Stage Growth Dividend Discount Model Calculator

Compute the intrinsic value of a stock.

Calculator Input
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.

Valuation Summary
Present Value of High Growth Stage Dividends:	$10.56
Terminal Price (at End of Stage 1):	$114.55
Present Value of Terminal Price:	$71.13
Intrinsic Stock Value:	$81.69

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

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