Present Value Models – Gordon Growth Model

g. calculate and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a two-stage dividend discount model, as appropriate.

h. identify characteristics of companies for which the constant growth or a multistage dividend discount model is appropriate.

Terms covered: Gordon Growth Model, 2-stage Growth Model, Sustainable growth rate

Download Slides

Formulas, definitions, diagrams at your fingertips

Now available for Quant, FRA, Derivatives, Fixed Income, Alternative Investments, Equity Investments, Corporate Finance, and Economics! Try it now!
Enter a search term (e.g. ‘mean’), or bookmark the glossary page!

Search: