How to use this calculator
- Enter expected next annual dividend, required annual return (%), constant annual dividend growth (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Growth must be below required return. No future dividend, fair price or suitability is guaranteed.
Worked example
With expected next annual dividend = 3, required annual return (%) = 8, constant annual dividend growth (%) = 3, modeled value per share is approximately 60.
What the result means
The Gordon-growth model is extremely sensitive when growth approaches the discount rate.
Common questions
How should I interpret modeled value per share?
The Gordon-growth model is extremely sensitive when growth approaches the discount rate.
What should I check before using this result?
Growth must be below required return. No future dividend, fair price or suitability is guaranteed.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: openstax.org — financial method. FinanceMath implements its own calculator.