Dividend Discount Value

Model constant-growth dividends below a required return.

Your numbers

Model value per share

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Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.

Formula

P=D₁/(r−g)

Model constant-growth dividends below a required return.

Worked example

Next annual dividend: 3
Required annual return (%): 8
Annual dividend growth (%): 2

Model value per share: 50

Scope and limitations

Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.

Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.

Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.

Formula version: a8d8b3cc3c8f · Example checked: 2026-10-30

Methodology