Discover how the Gordon Growth Model calculates stock value using constant dividend growth, including key inputs and examples ...

Reviewed by Margaret James The dividend discount model (DDM) is one of the basic applications of financial theory. The theory is easy to grasp: A stock is worth its price if that price is less ...

The Dividend Discount Model is a valuation formula used to find the fair value of a dividend stock.

A common estimate for a dividend issuing stock is that total returns is equal to the sum of two quantities: dividend yield and dividend growth.