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The dividend growth model projects future dividend payments based on a constant growth rate. Used to estimate intrinsic stock value assuming dividends grow perpetually.

सूत्र

Stock Value = D₁ / (r - g) where D₁ is next dividend and r is required return

चरण-दर-चरण मार्गदर्शिका

  1. 1Enter current dividend, growth rate, and required return
  2. 2Calculate next year's dividend
  3. 3Divide by the difference between required return and growth rate

हल किए गए उदाहरण

इनपुट
Current div: $2, growth: 5%, required return: 10%
परिणाम
Stock value ≈ $42
$2.10 / (0.10 - 0.05)

सामान्य गलतियां जिनसे बचना है

  • Assuming growth rate exceeds required return
  • Using current instead of next dividend

सेटिंग्स