Intrinsic Value Calculator
Enter the next dividend, your required return and the dividend growth rate to estimate the intrinsic value per share.
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Enter the dividend, required return and growth to see the intrinsic value.
Worked example
With these example inputs:
- Next dividend$2
- Required return8%
- Dividend growth3%
Intrinsic value per share: $40.00
- Return minus growth5.0%
Frequently asked questions
How is intrinsic value estimated?
This uses the dividend discount model: the next dividend divided by the required return minus its growth rate. A $2 dividend, 8% return and 3% growth gives about $40 a share.
What if growth is close to the required return?
As growth approaches the required return, the denominator shrinks and the value rises sharply. The model only works when the required return stays above the growth rate.