Gordon Growth Model Interactive

Gordon Growth Model Interactive Initial Div 2.00 Growth Rate 5% Required Return 10% Adjust sliders to see how the "Intrinsic Value" is derived from the sum of all future discounted dividends. 42.00 because it is the sum of all future dividends, each adjusted for the time value of money. Gordon Growth Model Interactive lets you explore this hands-on instead of only reading about it.

Analysis of common stocks and the models used to determine their intrinsic value based on future earnings and dividends. It focuses on Dividend Discount Model (DDM), Gordon Growth Model, Earnings-Per-Share (EPS), Price-Earnings (P/E) Ratio, Present Value of Growth Opportunities (PVGO) from the “Equity Valuation and Common Stocks” section.

The sliders change the key inputs. Every change updates the visualization in real time, so you can see exactly how each variable affects the outcome.

Finance Theory I provides a rigorous introduction to the fundamental principles of modern financial economics and investment management. The course focuses on the valuation of financial assets, the relationship between… This demo is the interactive piece for the “Equity Valuation and Common Stocks” section. Open the full Finance Theory I course wiki at https://www.getlykke.com/explore/public/finance-theory-i-5c23d6da-c239-4628-9b1d-fb3539a0c893 for notes, flashcards, quizzes and the other demos.

You'll build intuition for Dividend Discount Model (DDM), Gordon Growth Model, Earnings-Per-Share (EPS), Price-Earnings (P/E) Ratio, Present Value of Growth Opportunities (PVGO) — and, crucially, see how they behave when you change the inputs, which is hard to get from a textbook or lecture on Finance Theory I alone.