Stock Price Calculator: Determine Fair Value for Smarter Investing

Calculate Stock's Fair Value (Gordon Growth Model)

Expected Dividend Per Share Next Year (D₁)

The dividend expected to be paid out per share over the next year.

Required Rate of Return (r)

Your minimum acceptable annual return on investment (e.g., 10 for 10%).

Constant Dividend Growth Rate (g)

The rate at which dividends are expected to grow indefinitely (e.g., 5 for 5%). This must be less than the Required Rate of Return (r).

Unlock informed investment decisions with our free Stock Price Calculator. Quickly determine a stock's fair value using fundamental inputs like expected dividends, required return, and growth rate. Ideal for investors seeking to identify undervalued or overvalued stocks and enhance their portfolio strategy. Get instant results and assess investment potential with ease.

Formula:

The Gordon Growth Model (GGM) is widely used to determine the intrinsic value of a stock based on a series of dividends growing at a constant rate.

Formula:

P = D₁ / (r - g)

P: Current Stock Price (Fair Value)
D₁: Expected Dividend Per Share Next Year
r: Required Rate of Return (Cost of Equity, as a decimal)
g: Constant Growth Rate in Dividends (as a decimal)

Finance and Investing Tools

Stock Price Calculator: Determine Fair Value for Smarter Investing

Calculate Stock's Fair Value (Gordon Growth Model)

Calculated Fair Value:

Formula:

Formula:

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