Investment Tools and Analysis - Common Stock Valuation Models

Common Stock Valuation Models


Please enter the information highlighted in yellow.




Expected Return for Common Stock

LAST DIVIDEND		Dollar Amount
PRICE OF STOCK		Dollar Amount
EXPECTED GROWTH RATE		Decimal

EXPECTED RETURN:


Expected Growth Rate	Expected Return
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%

Price of Stock - Zero Growth Model

LAST DIVIDEND Dollar Amount
EXPECTED RETURN (ROR) Decimal

OUTPUT

PRICE OF STOCK:

Price of Stock - Constant Growth Model

LAST DIVIDEND Dollar Amount
EXPECTED RETURN (ROR (k) Decimal
GROWTH RATE (g) Decimal
k must > g

PRICE OF STOCK:

Expected Return Price of Stock
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%

Price of Stock - Variable Growth Model

LAST YEAR (e.g., 1996) 1996
LAST DIVIDEND
GROWTH RATE (g) Decimal
EXPECTED RETURN (ROR) (k) Decimal

DIVIDENDS
PRICE

CASH FLOWS

PRICE OF STOCK (Present Value):

Expected Return Price of Stock
(Present Value)
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%

Automatic recalculation

Back to Stocks, Investments & Investing