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Gordon Constant-Growth Model Terminal Equity Value Calculator

P = D₁/(k−g) — intrinsic value from growing dividends.

Calculates stock intrinsic value P = D₁/(k−g) where D₁ is the next dividend, k is required return (CAPM or assumed), and g is the constant growth rate. Useful for mature dividend-paying stocks.

Daniel Oh By Daniel Oh
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 / (k − g) = D₀(1+g) / (k−g)

In depth

Calculates stock intrinsic value P = D₁/(k−g) where D₁ is the next dividend, k is required return (CAPM or assumed), and g is the constant growth rate. Useful for mature dividend-paying stocks.