The Gordon growth model formula is based on the mathematical properties of an infinite series of numbers growing at a constant rate. The three key inputs in the model aredividends per share (DPS), the growth rate in dividends per share, and the requiredrate of return (ROR). P=D1r−gwh...
Definition of Gordon Growth Model Gordon Growth Model is a model to determine the fundamental value of stock, based on the future sequence of dividends that mature at a constant rate, provided that the dividend per...
The Gordon growth model (also known as the constant growth model) can be used to value dividend-paying companies in a mature phase of growth. A stable dividend growth rate is often a plausible assumption for such companies.[释义] 戈登增长模型(也被称为恒定增长模型)可以用来评估处于成熟阶段的...
百度试题 结果1 题目In the Gordon Growth Model, the growth rate is assumed to be ___ the required return on equity. A. greater than B. equal to C. less than D. proportional to 相关知识点: 试题来源: 解析 C 反馈 收藏
The Gordon Growth Model approximates the intrinsic value of a company’s shares using the dividend per share (DPS), the growth rate of dividends, and the required rate of return. Undervalued ➝ If the share price calculated from the GGM is greater than the current market share price, the...
Explore the Gordon Growth Model (GGM) and how to use the Gordon Growth Model formula after finding the historical rate. Learn how to calculate...
The Gordon Growth Model also relies heavily on the assumption that a company's dividend growth rate is stable and known. An even more general version of the Gordon Growth Model must be used if a stock such as agrowth stockdoesn't pay a current dividend. This places an even greater...
Stable model:As per the model, the dividends are assumed to grow at the same rate. Multistage growth model:The above assumption is not realistic as the expected dividend growth rate changes over the period of time which is captured in this model. ...
C “Equity Valuation: Concepts and Basic Tools,” John J. Nagorniak and Stephen E. WilcoxC is correct. The Gordon growth model is most appropriate for valuing common stock of a dividend-paying company that is mature and relatively insensitive to the business cycle or economic fluctuations.反馈...
Sigmoid Growth EquationGordon Growth ModelSustainable Growth RateJohannesburg Securities ExchangeListed CompaniesThe valuation of equity is a central topic in finance and accounting from many fronts. However, equity valuation is still subjective as dif...