Category: Financial Calculators Gordon Growth Model Calculator The calculator help calculating the stock price based on Gordon Growth Model The model wad developed by Myron Jules Gordon The model is used for valuing the value of a firm or a stock is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value. In other words, it is used to value stocks based on the net present value of the future dividends The value equals to: CF1/(r-g) Where: CF1 = The Cash Flow at the end of the year r = interest rate g = growth rate The dividend paid at time 0 $ The constant cost of equity capital for the company % The growth rate %