Stable Growth Dividend Discount Model Calculator
Use the Stable Growth Dividend Discount Model Calculator to compute the intrinsic value of a stock.
Look up a stock's current annual dividend and historical dividends at Yahoo! Finance or another stock site. Use the Dividend Growth Rate Calculator to get annualized dividend growth rate of a stock.
Look up a stock's current annual dividend and historical dividends at Yahoo! Finance or another stock site. Use the Dividend Growth Rate Calculator to get annualized dividend growth rate of a stock.
Do not enter $ or % in fields.
NOTE: Cost of Equity must be greater than the Annual Dividend Growth Rate.
NOTE: Cost of Equity must be greater than the Annual Dividend Growth Rate.
| Valuation Summary | |
|---|---|
| Intrinsic Stock Price: | $52.00 |
Sensitivity Analysis: Intrinsic Value across 5 Growth Rates
Showing intrinsic stock values across 5 distinct Annual Dividend Growth Rates and various Cost of Equity levels:
| Cost of Equity \ Growth Rate | 2.0% | 3.0% | 4.0% | 5.0% | 6.0% |
|---|---|---|---|---|---|
| 7.0% | $40.80 | $51.50 | $69.33 | $105.00 | $212.00 |
| 8.0% | $34.00 | $41.20 | $52.00 | $70.00 | $106.00 |
| 9.0% | $29.14 | $34.33 | $41.60 | $52.50 | $70.67 |
| 10.0% | $25.50 | $29.43 | $34.67 | $42.00 | $53.00 |
| 11.0% | $22.67 | $25.75 | $29.71 | $35.00 | $42.40 |
* N/A indicates invalid parameters where Cost of Equity is less than or equal to the Growth Rate. Highlighted cell represents your current input selection.
Computational Notes
The calculator, which assumes a stable dividend growth rate, uses the following formula to compute the intrinsic stock price:
Intrinsic Stock Price = Current Annual Dividend * (Annual Dividend Growth Rate / 100 + 1) / (Cost of Equity / 100 - Annual Dividend Growth Rate / 100)