How To Use the Calculator
Enter the Current Share Price, Annual Dividend Per Share, Expected future dividend growth rate, Total Years to Simulate, and discount rate. Click the "Calculate" button. The output will show below.
This includes the Intrinsic Value and the percentage Undervalued/Overvalued. That percentage is based on the difference between the current price and calculated intrinsic value.
Formula Explained
PV = Present Value of Future Dividends ($)
D = Annual Dividend Per Share ($)
g = Reasonable Annual Growth Rate of Dividend
n = The Number of Years Simulated in the Model
k = Discount Rate (US Treasury Bonds, AAA Corporate Bonds, WACC, S&P 500 Return, etc)
βWarning
Make sure to invest with a strong margin of safety. Inputs need to be realistic and may prove to be inaccurate (Garbage In/Garbage Out).
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Video Explanation