Dividend Discount Model Calculator

The Dividend Discount Model (DDM) is a classic stock valuation method. Using the Gordon Growth Model, it calculates a stock's intrinsic value by discounting all future dividends back to today's dollars.

Next year's expected dividend
Constant annual growth rate

How to Use

  1. 1

    Step 1

    Enter D₁, the dividend expected to be paid next year.

  2. 2

    Step 2

    Enter your Required Rate of Return (your desired investment return, often approximated by CAPM).

  3. 3

    Step 3

    Enter the constant Dividend Growth Rate (g) expected to hold forever.

  4. 4

    Step 4

    Click Calculate to get the theoretical intrinsic value per share.

Frequently Asked Questions

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