Dividend Discount Model Calculator
Estimate what a share is worth today from its expected dividends, using the Gordon growth model or a two-stage model.
Quick answer
The dividend discount model values a share as the present value of its future dividends. In the Gordon growth form, value = D1 / (r - g), with D1 the next dividend, r the required return and g the growth rate.
Dividend Discount Model Calculator
Intrinsic Value per Share
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Next Dividend (D1)
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Dividend Yield at This Value
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PV of Listed Dividends
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PV of Value Beyond the Table
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Dividends and Present Values
| Year | Dividend (₹) | Discount Factor | Present Value (₹) |
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Assumptions & method
- Gordon: V = D1 ÷ (r − g), with D1 = D0 × (1 + g) if you enter the last dividend. It requires g < r.
- Two-stage: dividends grow at the high rate for N years, D(t) = D1 × (1 + g1)^(t−1). Terminal value at year N = D(N) × (1 + gT) ÷ (r − gT), which requires gT < r.
- Each dividend is paid at the end of its year and discounted at (1 + r)^t. Dividends are annual; quarterly timing is not modelled.
- The table lists up to 10 years for the Gordon model, or the full high-growth period for the two-stage model, with the remainder shown as one line.
- Taxes, buybacks, share issuance and changes in the required return over time are not included. The result is an estimate, not a price target.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How the dividend discount model works
The dividend discount model says a share is worth the present value of all the dividends it will pay. The Gordon version assumes dividends grow at a constant rate forever, which collapses the infinite sum into D1 ÷ (r − g). The two-stage version is more flexible: dividends grow at a high rate for a set number of years, then settle at a lower terminal rate, and a terminal value captures everything after that. Each dividend is discounted at your required return. The model is only as good as its inputs, so use it to compare scenarios rather than to find a single exact price.