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Two-Stage Dividend Discount Model Calculator

High growth g₁ for n years, then perpetual g₂.

Values a stock using a two-stage dividend discount model: an initial high-growth phase followed by a stable perpetual growth rate and required return.

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Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

P = Σ D₀(1+g₁)ᵗ/(1+r)ᵗ + D₀(1+g₁)ⁿ(1+g₂)/(r−g₂)(1+r)ⁿ

In depth

Values a stock using a two-stage dividend discount model: an initial high-growth phase followed by a stable perpetual growth rate and required return.