Gordon Growth Model Calculator Excel Template
Gordon Growth Model Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
Download Template
Price range: $0.00 through $20.00
Calculate intrinsic stock value using the Gordon Growth Model dividend discount formula with this Excel template.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Value dividend-paying stocks with the Gordon Growth Model Excel template. This downloadable spreadsheet implements the classic constant-growth dividend discount model, letting you calculate intrinsic share values based on expected dividends, required returns, and growth rates.
What You Can Calculate
Enter your assumptions and instantly see:
- Next Year's Dividend (D1) - Automatically calculated from current dividend and growth rate, or enter directly
- Intrinsic Value (Fair Price) - The theoretical fair value per share using P0 = D1 / (r - g)
- Implied Dividend Yield - The yield implied by your valuation assumptions
Required Inputs
You'll need just four inputs to run the model:
- Dividend Input Mode - Choose whether you're entering the current dividend (D0) or next year's expected dividend (D1)
- Dividend Amount - The annual dividend per share in dollars
- Required Rate of Return - Your discount rate or hurdle rate (often derived from CAPM)
- Dividend Growth Rate - The expected constant annual growth rate of dividends
Methodology
The Gordon Growth Model values a stock as the present value of all future dividends, assuming constant growth in perpetuity. The core formula is P0 = D1 / (r - g), where D1 is next year's dividend, r is your required return, and g is the growth rate. This elegant model works best for mature companies with stable, predictable dividend growth.
Assumptions & Limitations
- Dividends grow at a constant rate forever (perpetuity assumption)
- Growth rate must be less than the required return (g < r)
- Best suited for mature, dividend-paying companies
- Results are highly sensitive to the spread between r and g
Frequently Asked Questions
Yes. Copy the Calculator sheet for each stock you want to analyze, enter different dividend and growth assumptions, and compare the intrinsic values side-by-side. You can also build a summary table that pulls values from each sheet.
Use the dropdown at the top of the Calculator sheet. Select 'D0 (Current)' if you have the most recent annual dividend - the template will calculate D1 for you. Select 'D1 (Next Year)' if you already have a forecast for next year's dividend.
Yes. The formulas are fully editable, so you can create a data table in Excel using different growth rates and required returns. Use Excel's Data Table feature (What-If Analysis) to automatically generate a sensitivity matrix.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
