Constant Growth Model Calculator

Cost price here can be defined as the cost of an individual share of a total amount of marketable shares of a firm. Use our online constant growth model calculator to find the current price by using the Gordon Growth Model (GGM). To calculate current price, provide the current annual dividend, required rate of return and constant growth rate. Compute (1 + constant growth rate(g)) and multiply it with current annual dividends and divide the obtained value by (k-g). Here k is a rate of return.

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Gordan Growth Model is a method for calculating the intrinsic value of stock without considering the current market conditions. The constant growth model tool is one of the effective method in valuing stocks.