Arguably the most important questions an investor must ask is: “How much is the stock actually worth?” There are many methods to answer this question. One popular method is the Gordon Growth Model.

Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

Generally speaking, the stock market is driven by supply and demand, much like any market. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is ...

The Gordon Growth Model is also known as the dividend discount model. It measures the value of a publicly traded stock by summing the values of all its expected future dividend payments discounted ...

There are many different ways to determine the intrinsic value of a stock. One popular method is the dividend discount model, which uses the stock's current dividend and its expected dividend growth ...

What’s useful about the Gordon growth model in this case is that it shows why a rational ... The “Technological Revolutions” paper also factors in changes in the other part of the growth formula’s ...