Arguably the most important questions an investor must ask is: “How much is the stock actually worth?” There are many methods to answer this question. One popular method is the Gordon Growth Model.

Generally speaking, the stock market is driven by supply and demand, much like any market. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is ...

The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

The Gordon Growth Model is also known as the dividend discount model. It measures the value of a publicly traded stock by summing the values of all its expected future dividend payments discounted ...

Hedge funds and financial analysts typically use a variety of approaches to determine the intrinsic value of shares. With that being said, the Gordon Growth Model is a subcategory of a larger group of ...

Gordon's growth model is a simple but powerful way of valuing shares based on the dividends that the company is expected to pay in future. It gets its name from Myron Gordon, an economist who ...