Share Value from Growing Dividends
Model dividends wey grow at constant rate lower than the return wey investor require.
Your numbers
Value of each share from the model
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
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Formula
P=D₁/(r−g)
Model dividends wey grow at constant rate lower than the return wey investor require.
Example wey show the calculation
- Dividend for the next year
- 3
- Return wey investor require every year (%)
- 8
- Rate wey dividend grow every year (%)
- 2
- Value of each share from the model
- 50
Where e fit work and limits
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: efeced17080a · Example don get check: