Stock Non-constant Growth Calculator
Your results
Value per share (P0)
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PV of high-growth dividends
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PV of terminal value
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Share of value from terminal
- Terminal value at end of year 3
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- First constant-growth dividend (year 4)
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The result depends heavily on the long-term growth rate and the required return; try a range of values.
Dividends and present values
Each dividend is discounted back to today at the required return. The last row is the terminal value: the constant-growth value of all later dividends, at the end of the final high-growth year.
| Year | Growth | Dividend | Discount factor | Present value |
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Results are estimates for educational purposes and are not financial, tax or legal advice.
Value a stock whose dividend grows fast for a few years before settling at a constant long-term rate, with the present value of every dividend and the terminal value. Pair this with the pivot point calculator online for a fuller picture before you make a decision.