Two-Stage Dividend Valuation Calculator
Value an entered high-growth dividend period followed by a constant-growth dividend perpetuity.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Project and discount first-stage dividends, then calculate and discount a Gordon-growth terminal value based on the following dividend.
Value/share=ΣD_t/(1+r)^t+[D_N(1+g_stable)/(r−g_stable)]/(1+r)^N
Worked example
With no first-stage years, most recent dividend 2, perpetual growth 3% and required return 9%, value is 2.06/(0.09−0.03)=34.3333333 per share.
Assumptions and input details
Stable growth must be below required return. Zero initial dividend stays zero in this proportional-growth model; future dividend initiation is not inferred. Required return and growth are entered scenarios, not forecasts. Dividend taxes, special distributions, buybacks and changing share counts are not inferred. This is a dividend-model value, not a target market price. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
References: OpenStax: dividend discount models
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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