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Dividend Discount Model (Gordon) Calculator

Stock fair value from next dividend, growth, and required return.

Compute the fair value of a stock using the Gordon Growth (constant-growth) dividend discount model: P = D₁ / (r − g), where D₁ is next year's expected dividend.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

P = D₁ / (r − g); D₁ = D₀ · (1 + g).

In depth

Compute the fair value of a stock using the Gordon Growth (constant-growth) dividend discount model: P = D₁ / (r − g), where D₁ is next year's expected dividend.