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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.

ସୂତ୍ର

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

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  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

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

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

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

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

ସେଟିଂ