Finance · Investments & Markets

Dividend Discount Model Calculator

Estimate value with one first-stage dividend-growth rate and a perpetual terminal-growth rate.

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Quick guide

How to use this calculator

  1. Enter the cash flows, values, rates, timing, or portfolio assumptions named in the fields.
  2. Use one consistent period and currency convention throughout the scenario.
  3. Read the calculator-specific model limits before interpreting the result.

Calculation method

Calculation method

Value = present value of first-stage dividends + Gordon terminal value discounted from stage end.

Model, simulation, root, square-root, and compounding outputs are estimates and are visibly marked approximate.

Worked example

Worked example

A current dividend of 2 grows 8% for five years, then 3% perpetually, discounted at 10%.

Value = present value of first-stage dividends + Gordon terminal value discounted from stage end.

Supported inputs

Precision and limits

Visible input limits

Inputs support up to 12 decimal places and lists support at most 1,200 rows. Iteration and simulation bounds are displayed in their fields.

International scope

No exchange, tax system, reporting standard, currency, fund rule, trading calendar, or market convention is selected automatically.

Decision boundary

Outputs are entered scenarios, not valuations, forecasts, risk limits, executable trades, suitability decisions, or recommendations.

Calculator-specific assumptions

Required return must exceed terminal growth. Dividends are annual and paid at year end.